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TMI Blog2011 (8) TMI 1007X X X X Extracts X X X X X X X X Extracts X X X X ..... erence in duty between finally assessed and provisionally assessed customs duty, to our mind sub-section (3) of Section 18 would be superfluous and redundant. It is precisely to cover the situation where an importer is held liable to pay higher duty upon final assessment as compared to that he paid at the time of provisional assessment that he can be asked to pay interest on the difference, that sub-section (3) of Section 18 was introduced in the statute book. To our mind Section 47 and particularly sub-section (2) thereof and sub-section (3) of Section 18 operate in different fields. In view of the above discussion, we do not find that the Tribunal has committed any error. Before closing we may record that there are no averments made befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AT has erred in holding that when the assessment was made provisional, assessment for the purpose of Section 47 was over and thereby holding leviability/chargeability of interest under Section 47(2) of the Act on the differential duty payable consequent upon final assessment of Bills of Entry made prior to 13-7-2006 as invalid?" 2. The respondents are involved in the business of ship breaking. The ship breakers had imported ships for breaking. The ships were presented before the customs authorities along with bills of entries in the period during 1912-1996. Such ships were cleared upon provisional assessment and payment of such provisionally assessed duties. The final assessment could not take place immediately. After rounds of remand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellants (i.e. present respondents herein) are entitled to the benefit to the extent of interest component. 5. The department approached the Tribunal by filing application for rectification primarily contending that Section 47 permitted the Department to collect interest on the differential duty. This application was also dismissed by the Tribunal by an order dated 3-8-2010. The Tribunal was of the opinion that Section 47(2) of the Customs Act would not have any application in the present case. It is against this order of the Tribunal, the department has approached this Court. All these Tax Appeals involve substantially similar facts. They are therefore, heard together and are being disposed of by this Common judgment. 6. Couns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether Section 47(2) would enable the department to collect interest for the differential duty between finally assessed and one which was assessed provisionally is a question we need to answer. The case of the department is that under sub-section (2) of Section 47 to the extent the respondents were required to pay the differential duty upon completion of assessment in addition to the provisional duty already paid, interest was chargeable. The Tribunal, however, held otherwise. 10. Before adverting to the provision contained in Section 47 of the Act we may notice that sub-section (3) of Section 18 of the Act in the present form was introduced by virtue of (Amendment) Act 29 of 2006. In the present form, sub-section (3) brought into effe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en percent] and not exceeding thirty-six per cent per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette] on such duty till the date of payment of said duty : Provided that where the bill of entry is returned for payment of duty before the commencement of the Customs (Amendment) Act, 1991 and the importer has not paid such duty before such commencement, the date of return of such bill of entry to him shall be deemed to be the date of such commencement for the purpose of this section. Provided further that if the Board is satisfied that it is necessary in the public interest so to do, it may, by order for reasons to be recorded, waive the whole or part of any interest payable under this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessed thereon. Such duty assessment would also included provisionally assessed duty. In turn, sub-section (2) permits the authorities to levy interest at the rates ranging between 10% to 36% per annum, as may be notified by the Central Government, on delayed payment of such duty beyond five days. The term assessment includes provisional assessment and when sub-section (2) talks of import duty under sub-section (1) to be paid within five days failing which there shall be liability to pay interest, only interpretation possible is that the interest, only interpretation possible is that the interest would be payable, if the importer fails to pay the final duty or provisional duty if so assessed. Under sub-section (1) if the clearance is perm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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