9911796707
TMI Blog2022 (8) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... K. R. SHRIRAM J.) : 1. Petitioners had imported, on or about 11th December 1990, a Computerised Treadmill vide Bill of Entry No.003637 and earlier, on 4th April 1989, vide Bill of Entry No.X10/920 petitioners had imported CT Scanner "Somotom CR". For these two imports, petitioners claimed exemption from payment of customs duty under Notification No.64/88-CUS dated 1st March 1988. As required under the Notification, petitioners had supported their claim for exemption relying on Customs Duty Exemption Certificates issued by the Directorate General of Health Services (DGHS). By letter dated 10th November 1997, DGHS, for reasons mentioned therein, withdrew the Customs Duty Exemption Certificate that it had issued. 2. An inquiry was initiated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equipments amounting to Rs.35,73,223/-, respondent no.3 in the order also directed petitioners to pay customs duty of Rs.35,73,223/-. It is rather strange because petitioners were never given an opportunity to show cause on the payment of customs duty. Mr. Shah, stated that notwithstanding this position, petitioners paid the customs duty of Rs.35,73,223/- and the penalty of Rs.50,000/-. Petitioners did not bother to pay the redemption fine on the medical equipments, and in effect abandoned those equipments. Therefore, petitioners did not redeem the confiscated goods. 5. Almost 12 years after the order dated 4th June 2003 was passed by respondent no.3, the Deputy Commissioner of Central Excise, Kolhapur, by a letter dated 20th March 2015 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to discharge liability of interest. Petitioners replied by a letter dated 3rd August 2018 and after referring to all the previous correspondence, denied any liability. On 7th September 2018, petitioner received a letter dated 29th August 2018 issued by the Assistant Commissioner of Central GST, reiterating their earlier letters and threatening to initiate recovery proceedings under Section 142 of the Act. At this stage, petitioners have approached this court by this writ petition. 8. Mr. Shah submitted that respondents' case is that interest was payable under Section 28AB of the Act and Notification No.47/1996-CUS (NT) dated 9th October 1996. Mr. Shah submitted that on the date of import of the medical equipments, Section 28AB of the Act a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Bill, 1996, reads as under: 28AB. Interest on delayed payment of duty in special cases:- (1) where any duty has not been levied or has been short levied or erroneously refunded by reasons of collusion or any wilful mis-statement or suppression of facts, the person who is liable to pay the duty as determined under sub-section (2) of section 28, shall, in addition to the duty, be liable to pay interest at such rate not below 10% and not exceeding 30% per annum, as is for the time being fixed by the Board, from the first day of the month succeeding the month in which the duty ought to have been paid under this Act or from the date of such erroneous refund, as the case may be, but for the provisions contained in sub-section (2) of Section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under: "28. Notice for payment of duties, interest etc. (1) When any duty has not been levied or has been short-levied or erroneously refunded, or when any interest payable has not been paid, part paid or erroneously refunded, the proper officer may, (a) in the case of any import made by any individual for his personal use or by Government or by any educational, research or charitable institution or hospital, within one year; (b) in any other case, within six months, from the relevant date, serve notice on the person chargeable with the duty or interest which has not been levied or charged or which has been so short-levied or part paid or to whom the refund has erroneously been made, requiring him to show cause why he should not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erroneously refunded, the date of refund; (d) in any other case, the date of payment of duty or interest." Therefore, sub-section (2) of Section 28 provides that notice under sub-Section (1) should have been first issued. To demand interest under Section 28AB, in such a notice there shall be allegations of collusion or wilful mis-statement or suppression of facts by the person liable to pay duty. Only after considering the representation of the person to whom such a notice has been issued, the proper officer should have determined the amount of duty or interest from such person. Otherwise no interest under Section 28AB can be demanded. 13. In our view, none of the pre-conditions required to demand interest under Section 28AB, viz; (a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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