TMI Blog2018 (1) TMI 644X X X X Extracts X X X X X X X X Extracts X X X X ..... t under the Act only. Further, it was held that the rate of interest of 24% was not the interest chargeable under the Act, but under the bond, which is contractual document in nature and this contractual question has not been examined by the Commission - the Hon’ble Supreme Court in the case of Rexnord Electronics and Controls Ltd., v. Union of India [2008 (3) TMI 8 - SUPREME COURT] held that the interest payable under the bond is not an interest payable under the Act. There is no error in the order passed by the Settlement Commission - appeal dismissed. - W.P.No.12180 of 2005 - - - Dated:- 2-1-2018 - T. S. Sivagnanam, J. For the Petitioner : Mr. R. Rishi Kumar for Mr.C.Saravanan For the Respondents : Mr. S. Rajasekar O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of Akbar Knitting Co. v. Commissioner of Customs (Exports), reported in 2017 (353) E.L.T. 49 (Mad.). On a careful reading of the said judgment, it clearly shows that the question, which fell for consideration before the Hon ble Division Bench, was whether the Customs authorities could enforce the bond and recover the interest and while deciding the said question, the Court held that, since Section 28AB of the Act was inserted only on 20.08.1996, the question of the Customs Authorities enforcing the bond to recover the interest in respect of the duties 'not paid' or 'short levied' prior to the insertion of Section 28AB of the Act is without jurisdiction. However, the Hon ble Division Bench has not considere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but under the bond at the rate of 24 per cent in terms of exemption notification. I am of the view though Bond furnished in terms of statutory decision, but then contractual character is not destroyed. I am unable to comprehend how the learned Commission could overlook the implication of bond in relation to payment of interest thereunder. It seems to me it has wrongly equated payability of interest under the bond with the expressed provision of the said Act. Unlike Civil Court the waiver either of full or of partial interest in contractual bargain cannot be granted by the Commission without consent of both the parties. To clarify the position had it been a case of chargeability or payability of interest under expressed provision of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of deal of private character. The power of waiver is relatable to the interest chargeable under the Act. However, subsequently, it was found that the rate of interest stipulated in the bond was reduced to 15 per cent on and from October, 2002, in place of 24 per cent. This reduction can be termed to be variation of the terms of the Contract subsequently and this has not been rejected by the importer. 6.The decision of the Calcutta High Court in Commissioner of Customs (Port) (supra) was approved and confirmed by the Hon ble Supreme Court in the case of Rexnord Electronics and Controls Ltd., v. Union of India reported in 2008 (224) E.L.T. 184 (S.C.). In the said decision, the Hon ble Supreme Court held that the interest payable under th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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