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2014 (5) TMI 161 - HC - CustomsLiability of duty – Imposition of Penalty and interest - Non–performance of export obligation – Issuance of Notice - Duty and interest paid before the service of notice - Once the duty is not paid within the specified time the liability to pay interest is automatic and the assessee is bound to pay interest for the delayed payment of duty - When the entire duty and interest payable was paid on 6-1-2003, the issue of notice on 7-3-2003 was one without jurisdiction – In view of Section 28(2B) if the duty and interest is paid before the service of notice and the said payment is informed to the proper officer, then the proper officer shall not serve any notice under sub-section (1) in respect to the duty or the interest so paid - If the amount of Rs. 7,24,161/- had been deposited more than what is actually due by the assessee after appropriating the amount due towards duty and interest, the balance amount should have been refunded to the assessee, question of imposition of penalty in these circumstances would not arise - Therefore, the order of the adjudicating authority imposing penalty is one without jurisdiction. Thus, order of the Tribunal setting aside the imposition of penalty is upheld - The order of the Tribunal setting aside the entire interest portion is set aside - The adjudicating authority shall calculate the interest payable for each year on the amount of duty payable that the said duty was due from the day it was due till the date of 6-1-2003 at the rate of 15% recalculating the interest and after apportioning the said interest portion, the remaining amount is to be refunded to the assessee - The matter is remitted back to the adjudicating authority to recalculate the interest – Decided partly in favour of assessee.
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