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TMI Blog2023 (5) TMI 819X X X X Extracts X X X X X X X X Extracts X X X X ..... 7) TMI 88 - CESTAT BANGALORE] , Tribunal by majority has held that there was no delay in paying duty assessed in terms of Section 47(1) of the Act. Sub Section (2) of Section 47, states that interest is payable if the duty is not paid within 2 days from the date on which the assessed bill of entry is returned to the assessee for payment of duty. I have to agree with the Member (J) that in the present case in terms of Section 47(1), there is no delay in payment of duty and consequently there is no liability to pay interest under Section 47(2) of the Act. There are no merits in the demand for interest made by the impugned order. The impugned order needs to be modified to that extent - appeal allowed. - Customs Appeal No. 86644 of 2013 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r only to the extent of demand of interest and does not challenge any other part of the order in the appeal. 3.1 I have heard Shri Mayur Shroff, Advocate for the appellant and Shri Ashwini Kumar, Additional Commissioner, Authorised Representative for the Revenue. 3.2 Arguing for the appellant, learned counsel submits that:- The provisions of Section 47(2) of the Customs Act, 1962 are not attracted in the facts and circumstances of the present case. In the case of Ruchi Soya Industries Ltd. [2016 (339) ELT 613 (Tri.-Bang.)], Bangalore Bench of the Tribunal held that Section 47(2) provides for interest in those cases where import duty assessed in terms of sub-section (1) of Section 47 within a period of two days from the date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the importer could not be transferred to the Customs Account. 13. I find that the items imported by the importer were held eligible for exemption under Notification 65/88-cus vide entry at S.No.C-105 with description Ultrasonograph vide Order-in- Original dated 8.01.2010. Notification No 159/89 dt 12.05.1989 exempts auxiliary duty on certain goods which are wholly or partially exempt from basic customs duty as detailed below:- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), read with sub-section (4) of Section 35 of the Finance Act, 1989 (13 of 1989), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 12.05.89. So the total duty payable by the importer is only 40% (Basic Customs duty) on the assessable value. I find that the duty has been re- calculated. Accordingly, the duty liability on the said goods would be Rs.3,11,022/- (Rupees Three Lakhs Eleven Thousand and Twenty Two only) which has to be paid by the importer. This order is subject to the results of CA26331/08 filed by the importer. 4.3 Interestingly the Commissioner has not recorded any reason for demanding the interest under Section 47(2) of the Customs Act. Section 125 of the Customs Act reads as follows:- SECTION 125. Option to pay fine in lieu of confiscation. - (1) Whenever confiscation of any goods is authorised by this Act, the officer adjudging it m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of duty as noted above. 4.5 Accordingly the demand for interest made cannot be upheld. 4.6 In the case of Ruchi Soya Industries Ltd. [2016 (339) ELT 613 (Tri.-Bang.)], Tribunal by majority has held as follows:- 26. The goods were cleared or the out of charge order was made on 23-11-2000. It is after this that a letter was issued demanding enhanced duty. The appellants paid the differential duty on 10-3-2001. It is to be noted that the assessed duty stands discharged by respondents on 20-11-2000 itself. Thus there was no delay in paying duty assessed in terms of Section 47(1) of the Act. Sub Section (2) of Section 47, states that interest is payable if the duty is not paid within 2 days from the date on which the assessed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ri.- Mumbai)], Tribunal has held as follows:- 5.5 As regards the demand of interest of Rs. 9,50,316/-, Section 125(2) does not provide for payment of interest. Further in the present case, interest has been demanded under the provisions of Section 28AB; the said Section 28AB will come into picture only when the duty demand is confirmed under Section 28 of the Customs Act and therefore, the provisions of Section 28AB has no role to play in the present case. Similarly, we notice that penalty has been imposed under Section 114A; the said Section applies only when duty demand is confirmed under Section 28A(1) of the Customs Act. In the present case the duty demand has been confirmed under Section 125 and therefore, the question of invoking ..... X X X X Extracts X X X X X X X X Extracts X X X X
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