Home Case Index All Cases Customs Customs + AT Customs - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 1503 - AT - CustomsRate of Interest - appellants have challenged the order of Commissioner stating that interest should be charged from them @ 15% instead of 24% - Import of capital goods under EPCG Scheme - failure to fulfill the export obligations - recovery of the of the duty saved along with the interest due - release of attached goods - Held that:- Issue is squarely covered by the decision of Hon’ble Delhi High Court in case of Rai Agro Industries Ltd, [2006 (2) TMI 191 - HIGH COURT OF DELHI], where it was held that Claim for interest, it is fairly settled, can arise either on the basis of a statute or a contract or trade usage. In the instant case, the claim for payment of duty is supported not only by the statutory provisions of Sections 28AA and 28AB, but also the terms of the statutory policy and the legal undertaking provided, by the petitioner in accordance with the same. In terms of DGFT policy circular No 9/2003 dated 22.05.2003, for licenses issued prior to the date of Circular, interest rate shall be 24% till the date of Circular and 15% from the date of Circular. Commissioner has in his order given the benefit of reduced interest rate from 13.05.2002, which is much prior to the date of issue of this circular. Hence order of Commissioner cannot be faulted on this account. In the present case the demand for interest was confirmed along with the demand for duty and hence demand of interest was made under the Customs Act, 1962. Further from the impugned order, it is quite evident that interest has to be calculated from the date of importation and not the date of issue of license. Since Commissioner has himself allowed for computation of interest from the date of importation, as claimed by the appellants we do not reason why the said issue has been agitated again in the appeal - appeal dismissed.
|