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TMI Blog2024 (12) TMI 416X X X X Extracts X X X X X X X X Extracts X X X X ..... e - HELD THAT:- The binding in nature of the clauses under the Bond has come up for consideration in matters both before the Supreme Court in Rexnord Electronics and Controls Limited v. Union of India and Others [ 2008 (3) TMI 8 - SUPREME COURT ] as well as this Court. The Supreme Court, considering an identical question as arising in this matter, has crystallised the issue, as to whether the term ' interest ' will include within its fold interest payable under the bond furnished by the appellant before the DGFT at paragraph 16 of that judgment. In that case as well, there was a levy of interest for default of licence conditions. The issue was decided in favour of the revenue and against the assessee - The Supreme Court categoricall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rious machineries and cleared the same claiming exemption of import duty. 3.The machineries were cleared by paying concessional duties on the assumption that the export target, as set out, would be achieved. However, admittedly, the petitioner had defaulted in achieving the export target and the bank guarantee executed by the petitioner was thus enforced. 4.The petitioner was issued a show cause notice calling upon it to remit the differential duty on the import of the machineries originally imported on concessional rate. Inter alia, there was also a stipulation for interest at the rate of 24%. The petitioner has remitted the duty in full and has challenged the show cause notice by way of the writ petition. 5.The first submission of the pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : '..........that in the event of his default in meeting the aforesaid obligations/conditions, he shall pay an amount equal to 24% interest per annum on the amount of duty saved from the date of import of the first consignment till the date of payment to the Government modifying the Scheme from time to time .....' 9.The binding in nature of the clauses under the Bond has come up for consideration in matters both before the Supreme Court in Rexnord Electronics and Controls Limited v. Union of India and others [(2008) 12 SCC 156] as well as this Court. The Supreme Court, considering an identical question as arising in this matter, has crystallised the issue, as to whether the term ' interest ' will include within its fold inte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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