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2016 (12) TMI 9 - AT - CustomsValuation - import of second-hand machines - EPCG scheme - enhancement of value - Held that: - The enhancement accorded by the licencing authority is incorporated into the licence and it has the effect of having been revised to the higher limit from the original date of issue. The assessing officer appears to have encashed the bank guarantee without finalizing the provisional assessment which is an action outside the authority of law. Duties become payable only upon assessment and failure to discharge assessed duty liability is visited by consequences such as encashment of bank guarantee or other coercive measures. The realization from the encashment of bank guarantee is liable to be treated as payment of duty and interest, if any be due, is liable to charged only till that date on the shortfall. Consequently, in finalizing of the provisional assessment, it was incumbent upon the proper officer to order for recovery of duty only on the value of imports not covered by the enhanced value of licence as on date of import, i.e., ₹ 4,97,180 along with interest from 1st December 1995 to 29th September 1998 when the bank guarantee was encashed. The interest liability is approximately ₹ 2,53,275. With a total liability of ₹ 7,50,455 appellant is entitled to refund of the amount appropriated in excess in the order-in-original. Appeal is allowed by modifying the demand of duty and interest as narrated supra. The assessment is finalized on the above terms and the competent authority in New Customs House is directed to compute the exact interest liability and refund the balance amount to the appellant.
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