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TMI Blog2023 (2) TMI 901X X X X Extracts X X X X X X X X Extracts X X X X ..... en 1995 and 2003. The SCN is dated 13.10.2008. The duty having been paid on the date of De-Bonding the relevant date to compute the demand would therefore be the date of debonding ie., 31.03.2007. The Ld. AR has submitted that as the appellant had filed a request for waiver, and also an undertaking; the date of rejection of the request for waiver has to be considered as the relevant date - The section does not speak of any extension of time based on a request for waiver. Further the request for waiver is filed as per the Board Circular. Circulars, though binding on the Department, is not so on the Tribunal. Thus, the SCN is time barred. The Tribunal in the case of Commissioner of Customs, Madras Vs Electronic Research Ltd. [[ 1999 (1) TM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was liable to interest under Section 61 (2) (i) of Customs Act, 1962 at the rate of 15% per annum as per Notification No. 28/2002- Cus. (NT) dated 13.05.2002. 3. On 23.07.2007, the appellant filed an application to the Chief Commissioner of Central Excise, Chennai with a request for waiver of interest on the warehoused goods at the time of De-Bonding. The request was denied vide letter dated 14.08.2008. Accordingly, SCN dated 13.10.2008 was issued to the appellant under Section 28 of the Custom Act, 1962 proposing to demand an amount of Rs.10,88,557/- as interest and also proposing to impose penalty under Section 117 of the Act ibid. 4. After due process of law, the Commissioner confirmed the demand of interest and also imposed penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el put forward mainly two contentions to assail the demand of interest. Firstly, that in terms of para 4 of CBEC Circular No. 10/2006 dated 14.10.2006 it is directed that no interest should be demanded on goods imported by 100% EOU. The circular is intended to take a liberal view as to the demand of interest. The second contention raised is that the SCN is time barred. As per Section 28 of Customs Act, 1962, as it stood during the relevant period, the SCN for demand of interest has to be issued within six months of the relevant date. The date of Ex-Bond Bill of Entry is 30.03.2007 and the appellant then had paid entire duties including duty on warehoused raw materials. However, the SCN is issued only on 13.10.2008 which is beyond prescribed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A need was felt in the Board to combine all these instructions into one consolidated circular on the aforesaid matter to ensure uniformity to consider the request for waiver of interest on customs duty on any warehoused goods u/s 61 not the Customs Act, 1962.Accordingly, in supersession of these previous guidelines and circulars on the aforesaid matter, the instructions have been consolidated in this Circular. . 4. The guidelines where the interest would generally be waived have been framed keeping in mind the fact that for certain specified categories of imports such as ship stores and others, the import duty is finally not payable. In certain other cases, it was considered that in view of the production programme or nature of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant. 13. Be that as it may, the SCN has been issued under Section 28 of the Customs Act,1962. The said section is noticed as under : SECTION 28 Notice for payment of duties, interest etc .- (1) When any duty has not been levied or has been short-levied or erroneously refunded, or when any interest payable has not been paid, part paid or erroneously refunded, the proper officer may, - (a) in the case of any import made by any individual for his personal use or by Government or by any educational, research or charitable institution or hospital, within one year; (b) in any other case, within six months, from the relevant date, serve notice on the person chargeable with the duty or interest which has not been levied or char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as per the Board Circular. Circulars, though binding on the Department, is not so on the Tribunal. We have no hesitation to hold that the SCN is time barred. 15. The Tribunal in the case of Commissioner of Customs, Madras Vs Electronic Research Ltd. (supra) held that in absence of any limitation period for demanding interest in respect of Customs duty payable in term of Section 61(3) of Customs Act, in the case of warehoused goods, the limitation period would be the period prescribed in Section 28 of the Act ibid. The Tribunal relied on the judgment in the case of TVS Whirlpool Ltd (Supra). 16. After appreciating the facts, evidence and the decisions as above, we are of the view that the demand of interest cannot sustain as the SCN ..... X X X X Extracts X X X X X X X X Extracts X X X X
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