TMI Blog2005 (5) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... toms, Bangalore, proposing to demand an amount of Rs. 57,56,956/- being the duty chargeable on the goods imported under Notification No. 140/91-Cus. dated 22-10-91, besides proposing to recover interest on the said duty amounting to Rs. 33,64,805/- treating the imported goods as liable for confiscation and to impose penalties under the Customs Act, 1962. The application filed for settlement of the aforesaid proceedings was admitted vide Order No. 10/2005-Cus. dated 31-2-05. 2. The matter was heard on 1-4-2005, when Shri R. Raghavan, Advocate appeared for the applicant. While narrating the facts of the case, he stated that the duty demanded by the Revenue has been paid before the issue of Show Cause Notice. The applicant Company imported o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s upheld. It was further submitted that the notification under which the impugned imports took place has been issued under Customs Act, 1962 with a condition to pay duty and interest, if export obligation under licence is not performed. When the duty due in terms of a condition of notification is considered as coming within the scope of Customs Act, 1962 the interest on the said duty should also be considered as arising out of Customs Act and not in isolation. If the interest is in terms of a demand which is a part of notification and notification being part of Customs Act, 1962, the Settlement Commission has necessary authority for waiver of interest as well. He also stated that the interest payable has been brought down to Rs. 27,34,492.8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition to the above conditions of notifications, we find that the applicant has also entered into an agreement with the Revenue to pay duty along with interest in case of failure to fulfil the export obligation. In terms of both the notifications referred to above, the interest is payable during the relevant period from 5/2000 to 7/2003 at 15% per annum. Therefore the applicant is required to discharge interest liability accordingly, on the duty involved and paid by him. However, we see no objection for granting immunity from the penalties proposed as well as prosecution under the Customs Act. We are not able to entertain the request for immunity from penalties and prosecution under other enactments, since no specific mention has been made. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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