9911796707
TMI Blog2021 (10) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... fore it requested an extension of the validity period which was rejected by order dated 22-01-2008 of the 2nd respondent. The petitioner thereupon preferred a review petition before the 1st respondent. Such a review petition is also provided for in terms of the provisions contained in a Foreign Trade Policy 2004-2009. When the review petition was pending an attempt was made to invoke the bank guarantee provided by the petitioner requiring the petitioner to approach this Court through W.P (C) No.8990/2008. The invocation of the bank guarantee was stayed by this court. Finally by Ext.P2 judgment dated 05-02-2013 the review petition was directed to be considered and disposed of. After the aforesaid judgment of this court, the review petition was taken up for consideration and Ext.P4 communication was issued by the 2nd respondent informing the petitioner that the review petition had not been considered favourably. The review petition appears to have been considered by the Policy Relaxation Committee, the minutes of which have been produced as Ext.P5. The only relief was that granted to the petitioner as is evident from a reading of Ext.P5 is that the petitioner may opt to get its case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aised by learned counsel for the petitioner that the petitioner is not liable to pay interest for the period during which Ext.P1 review petition was pending before the 1st respondent, it is submitted that interest is statutory and this court in the exercise of jurisdiction under Article 226 of the Constitution of India cannot waive statutory interest. I have considered the rival contentions. 4. Exhibit P5 minutes of the Policy Relaxation Committee show that the petitioner had admitted before the authority concerned that they had made zero exports within the original validity of the advance licence authorisation. The minutes would also record that one extension of 6 months had been granted by the 3rd respondent. The import in question took place in the year 2004. The Policy Relaxation Committee considered that the problems projected by the petitioner for failure to meet the export obligation were from February 2005 to April 2006 and that even before that period i.e., from March 2004 to February 2005 no exports for meeting the obligation under the subject advance licence was effected by the petitioner. The Committee also noticed that the export obligation period had been extended up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a reasonable time. There can be no quarrel with that proposition. However, the failure on the part of the statutory authority to exercise power vested in it cannot automatically result in an order that the petitioner should be relieved from the payment of interest for any period of unreasonable delay in exercise of statutory power. The petitioner admittedly paid the amount due on account of failure to meet the export obligation only on 27-08-2013. The advance licence was issued in 2004 and the export obligation period was 18 months from the date of issue. Even accounting for the 6 months extension granted by the original authority, the period of export obligation would have expired in 2006. The petitioner was able to import materials without payment of customs duty only in terms of the advance licence. The petitioner, on failure to meet the export obligation, was required to pay customs duty on the imported material. The export obligation period having ended in the year 2006 (even after the extension) the petitioner was bound to pay customs duty in the year 2006. The petitioner has paid the customs duty only in the year 2013. The petitioner could have opted to remit customs duty u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 7', that must be understood in the context of the aforesaid expressions employed in the two sub-sections. Therefore, the expression 'tax payable' under the said two sub-sections is the full amount of tax due and 'tax due' is that amount which becomes due ex hypothesi on the turnover and taxable turnover 'shown in or based on the return'. The word 'payable' is a descriptive word, which ordinarily means 'that which must be paid or is due, or may be paid' but its correct meaning can only be determined if the context in which it is used is kept in view. The word has been frequently understood to mean that which may, can or should be paid and is held equivalent to 'due'. Therefore, the conjoint reading of Sections 7(1), (2) and (2-A) and 11-B of the Act leaves no room for doubt that the expression 'tax payable' in Section 11-B can only mean the full amount of tax which becomes due under sub-sections (2) and (2-A) of the Act when assessed on the basis of the information regarding turnover and taxable turnover furnished or shown in the return. Therefore, so long as the assessee pays the tax which according to him is due on the basis of information supplied in the return filed by h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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