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TMI Blog2019 (2) TMI 1503X X X X Extracts X X X X X X X X Extracts X X X X ..... oners before the High Court are liable to pay interest at the rate of 24% per annum from the date on which the consignment under the impugned license were cleared from customs upto 12.05.2002. b) The aforesaid petitioners are liable to pay interest at the rate of 15% per annum for the period starting from 13.05.2002 to the date of payment of duty." 2.1 Appellants had imported capital goods under EPCG scheme. They also executed a bond as required, binding themselves to pay interest @ 24% on the duty saved, in the event of their failure to fulfil the export obligations 2.2 They failed to fulfill the export obligation. Accordingly proceedings were initiated against them for recovery of the of the duty saved along with the interest due. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % instead of 24%, in view of the Public Notice No 9 dated 22.05.2003 issued by the DGFT. They further submitted that the interest is leviable from the date of import of the capital goods vide Bill of Entry dated 8.10.1993, in terms of Bond Executed by them before DGFT for obtaining the EPCG license. Hence the said interest is not payable/ leviable under the provisions of Customs Act, 1962. 4.1 When the matter was listed for hearing none appeared. None has appeared on behalf of appellant's on earlier hearing also, i.e. on 6.08.2018, 9.10.2018, 20.11.2018 and 03.01.2019. While adjourning the matter on 20.11.2018 bench recorded "Adjourned to 03.01.19. Registry to ensure issuance of notice through AR and self." Notice for hearing issued on 26. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son chargeable with duty determined under sub-section (2) of Section 28, fails to pay such duty within three months from the date of such determination, he shall pay, in addition to the duty, interest at such rate not below 10% and not exceeding 36% per annum from the date immediately after the expiry of period of three months till the date of payment of such duty. Section 28AB deals with interest on delayed payment of duty in special cases and inter alia provides that where any duty has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the person who is liable to pay duty as determined under sub-section (2) or has paid the duty under sub-section (2B) of Section 28, shall, in addition to the duty, be li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ardless therefore of which, the failure of the export obligation is noticed or established against the importer, once a failure is established or admitted the obligation to pay the differential duty along with interest at the stipulated rate arises and the period for which such payment has to be made will be reckoned from the date when the first consignment was cleared till the date of actual payment. There is in that view sufficient legal sanction for the demand of interest raised against the petitioner on the amount of differential duty. Reliance upon the decisions of the Supreme Court in Indian Carbon Ltd. v. State of Assam, AIR 1997 SC 3054, JK Synthetics Ltd. v. Commercial Taxes Officer, AIR 1994 SC 2393, M/s. VVS Sugars v. Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issuance of Circular the interest rate will be 15% in respect of all EPCG license irrespective of the date of issue. Thus in terms of said circular for licenses issued prior to the date of Circular, interest rate shall be 24% till the date of Circular and 15% from the date of Circular. Commissioner has in his order given the benefit of reduced interest rate from 13.05.2002, which is much prior to the date of issue of this circular. Hence order of Commissioner cannot be faulted on this account. 5.4 In the present case the demand for interest was confirmed along with the demand for duty and hence demand of interest was made under the Customs Act, 1962. Further from the impugned order, it is quite evident that interest has to be calculated f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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