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TMI Blog2016 (12) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... hment of bank guarantee or other coercive measures. The realization from the encashment of bank guarantee is liable to be treated as payment of duty and interest, if any be due, is liable to charged only till that date on the shortfall. Consequently, in finalizing of the provisional assessment, it was incumbent upon the proper officer to order for recovery of duty only on the value of imports not covered by the enhanced value of licence as on date of import, i.e., ₹ 4,97,180 along with interest from 1st December 1995 to 29th September 1998 when the bank guarantee was encashed. The interest liability is approximately ₹ 2,53,275. With a total liability of ₹ 7,50,455 appellant is entitled to refund of the amount appropriated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of licence to make up for the deficit and upon submission of undertaking to submit the approval of enhancement by February 1996. Bank guarantee of ₹ 14,62,728 was furnished along with bond as a condition of provisional assessment. The licencing authority had, initially, vide letter F No. 01/36/022/13/AM-96/EPCG-III/101 dated 26 th May 1997, declined to entertain the application but it was finally acceded to by enhancing the permissible limit of import to US$586487 vide letter dated 29 th January 1999. Despite this enhancement, the licence was yet not sufficient to cover import value of US$ 41208.64 or ₹ 13,25,811.17 on which the duty leviable was ₹ 4,97,180. 3. While the request was, as yet, pending with the lic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he liability to duty was crystallized at ₹ 4,97,180 and interest at ₹ 10,46,193; after appropriation of the amount encashed, appellant was held liable to further dues of ₹ 80,645. The first appellate authority rejected the appeal filed by M/s Niwas Spinninig Mills Ltd leading to this appeal before us. 5. The enhancement accorded by the licencing authority is incorporated into the licence and it has the effect of having been revised to the higher limit from the original date of issue. The assessing officer appears to have encashed the bank guarantee without finalizing the provisional assessment which is an action outside the authority of law. Duties become payable only upon assessment and failure to discharge assessed du ..... X X X X Extracts X X X X X X X X Extracts X X X X
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