TMI Blog2014 (5) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... then the proper officer shall not serve any notice under sub-section (1) in respect to the duty or the interest so paid - If the amount of Rs. 7,24,161/- had been deposited more than what is actually due by the assessee after appropriating the amount due towards duty and interest, the balance amount should have been refunded to the assessee, question of imposition of penalty in these circumstances would not arise - Therefore, the order of the adjudicating authority imposing penalty is one without jurisdiction. Thus, order of the Tribunal setting aside the imposition of penalty is upheld - The order of the Tribunal setting aside the entire interest portion is set aside - The adjudicating authority shall calculate the interest payable for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal. The Tribunal held as the assessee had already paid duty even before the issue of show cause notice, the imposition of penalty and interest is not justified and therefore, it set aside the order of the adjudicating authority insofar as imposition of interest and penalty is concerned. Aggrieved by the said order, the Revenue is in appeal. 3. From the aforesaid facts it is clear as the assessee did not perform its export obligation as the assessee had a short fall, there were an obligation to pay the duty to the extent of the short fall. The liability of duty as computed is not in dispute. Once the duty is not paid within the specified time the liability to pay interest is automatic and the assessee is bound to pay interest for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due. 5. Therefore, the order of the Tribunal setting aside the imposition of penalty is upheld. The order of the Tribunal setting aside the entire interest portion is set aside. The adjudicating authority shall calculate the interest payable for each year on the amount of duty payable, keeping in mind that the said duty was due from the day it was due till the date of 6-1-2003 at the rate of 15% recalculating the interest and after apportioning the said interest portion, the remaining amount is to be refunded to the assessee. To that extent the order succeeds. 6. Hence, we pass the following order : ORDER (i) Appeal is allowed in part. (ii) The order of the Tribunal setting aside penalty is confirmed. Insofar as set ..... X X X X Extracts X X X X X X X X Extracts X X X X
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