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2019 (8) TMI 1388 - HC - CustomsDemand of interest on recovery of excess duty drawback claim - Section 75A (2) of the Customs Act, 1962 - when the petitioner realized that there was an excess claim and grant of drawback to the extent of ₹ 4,92,251/-, he had deposited the same on 18.10.2004 and the show cause notice came to be issued subsequently on 13.12.2004 - Demand raised without issuance of SCN - HELD THAT:- Section 75A(2) stipulates that if any erroneous drawback has been paid, the claimant shall repay the said amount within two months from the date of demand and shall also pay interest from the date after the expiry of the said two months till the date of recovery - Admittedly, such a deposit has been made by the petitioner even prior to the demand of drawback under the show cause notice. Section 75A(2) contemplates payment of interest from the date of demand of the erroneously paid drawback. Since the petitioner had repaid the drawback even prior to the demand, the respondents will not be empowered to claim any interest. On this ground, the claim for interest is liable to be quashed. No SCN issued - HELD THAT:- The Supreme Court of India in the case of UNION OF INDIA AND OTHERS VERSUS MADHUMILAN SYNTEX PVT. LTD. [1988 (5) TMI 38 - SUPREME COURT] had held that a demand raised without notice or hearing, would be invalid - As such, the interest levied by the first respondent without the prior show cause notice for proposed interest is invalid. Petition allowed.
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