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TMI Blog2012 (6) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... dvance licences. The appellant discharged export obligations in respect of 8 licences but could not discharge export obligation in respect of 5 licences despite the said licences were revalidated granting extension of period for export by the concerned authority. Consequently the Show Cause Notice was issued to the appellant demanding duty besides invoking the provisions for recovery of interest under the Customs Act read with relevant Notification No. 31/1997-Cus. Both the lower authorities have confirmed the demand of interest raised against the appellant. Hence, the present appeal. 3. Ld.Counsel would submit that both the lower authorities have confirmed the amount of interest under the provisions of Section 28 AB of Customs Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .C.), has held that the interest is payable under the bond and not in terms of statutory scheme as Department cannot proceed under Section 28 of Customs Act, 1962. 6. We have considered the submissions made at length by both sides. We find that the issue involved is only regarding interest liability on the appellant for the duty liability already discharged by him. It is undisputed that the said duty liability is on the goods which were imported duty free under the advance licences for consumption by the appellant and it is also undisputed that the appellant has not fulfilled export obligations in respect of 5 advance licences. 7. Without considering any of the legal submissions made by ld.Counsel, we find that the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her side, through the Assistant Commissioner, who acted on behalf of His Excellency the President of India. Exemption has been given by the Assistant Commissioner under the agreement and that export obligations are to be discharged by M/s Parag Exports, and if it fails to discharge the obligations, then M/s Parag Export is required to pay duty and interest thereon. Therefore, it cannot be said that it is a mere undertaking. In fact, it is an agreement in the form of undertaking agreed between the two parties i.e. Assistant Commissioner of Customs on one side and M/s Parag Exports on the other side. The Assistant Commissioner has agreed to grant exemption in terms of Notification No.31/97-Cus, dt.1.4.1997 against Import Licen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in the form of undertaking, it is a contractual liability. When it is a contractual liability, the Settlement Commission has rightly not entertained the application of the petitioner and remitted the matter back to the Dy.Commissioner for adjudication. We see no substance in the petition and the same is, therefore, dismissed. 8. It can be seen from the above reproduced paragraphs of the judgment of Hon'ble High Court of Gujarat, we find that their Lordships have clearly held that the appellant herein has to pay interest which has been given in the form of an undertaking by them to the authorities. On the face of such judgment by Hon'ble High Court, we find that the appellant is liable to discharge interest as directed by H ..... X X X X Extracts X X X X X X X X Extracts X X X X
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