TMI Blog2019 (8) TMI 1388X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 heari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sal to impose penalty under Section 114 (iii) and confiscation under Section 113 of the Customs Act. As against the show cause notice, the petitioner had filed an application under Section 127B of the Customs Act, 1962, before the first respondent. Since the petitioner had admitted the entire duty liability and paid the same even before the issuance of the show cause notice, he prayed for immunity from penalty, confiscation and waiver of interest. By the impugned order dated 12.05.2005, the first respondent had granted the petitioner immunity from penalty and confiscation but however, interest at the rate of 10% per annum was levied. As against the levy of interest, the Writ Petition has been filed. 3. The learned counsel f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. Section 75A (2) of the Customs Act, 1962, as it then stood, reads as follows:- Section 75 A (2). Interest on drawback -Where any drawback has been paid to the claimant erroneously, the claimant shall, within a period of [two months] from the date of demand, pay in addition to the said amount of drawback, interest at the rate fixed under Section 28AA from the date after the expiry of the said period of [two months] till the date of recovery of such drawback. As seen above, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the method permitted by the Deputy Commissioner and it should not be made to suffer. In any case, the petitioner should be afforded a hearing and for that purpose, reliance is placed on the judgment of the Apex Court in Union of India and Ors. v. Madhumilan Syntex Pvt. Ltd. to the effect that the demand raised without notice or hearing would be invalid. 9. We have noted the submissions with respect to the merits of the demand and the defence of the petitioner. The fact however remains, that principles of natural justice require that the petitioner ought to be issued a Show Cause Notice as to why the interest amount should not be claimed from it and after affording a hearing that liability ought to be decided. That has no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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