TMI Blog2023 (2) TMI 687X X X X Extracts X X X X X X X X Extracts X X X X ..... t paid by the assessee on Customs Duty is allowable as deduction u/s 43B - Decided in favour of assessee. - ITA No.831/PUN/2019 - - - Dated:- 11-1-2023 - SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER Assessee by Shri Nikhil S Pathak AR Revenue by Shri Ramnath P Murkunde DR ORDER PER DR. DIPAK P. RIPOTE, AM: This appeal filed by the Assessee is directed against the order of ld.Commissioner of Income Tax(Appeals)-1, Pune, dated 25.03.2019for the A.Y. 2013-14 emanating from the order of Assessing Officer (AO) passed under section 143(3) of the Act, 1961 dated 23/12/2016. The assessee has raised the following grounds of appeal: 1. The learned CIT(A) erred in confirming the disallowance of interest of Rs.3,37,96,354/- paid on account of delayed payment of custom duty on the ground that the same was disallowable in view of explanation (1) to section37(1) of the Act. 2. The learned CIT(A) failed to appreciate that the interest on delayed payment of custom duty was not a payment which was in the nature of any offence or prohibited by law and therefore, the provisions of explanation (1) to section 37(1) were no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the DGFT to the appellant company on 03.02.2012 and the details of which is as under:- S.No. Advance Authorization License No. Original date of issue of License Date of extension of export obligation period 1. 3110027728 02.01.2007 28.05.2009 2. 3110028807 03.04.2007 30.04.2009 3. 3110030491 23.08.2007 28.05.2009 4. 3110031218 19.10.2007 28.05.2009 Even after the transfer of licenses, the appellant could not fulfill export obligation and therefore the Director General of Central Excise Investigation (DGCEI) conducted raid to the office of the appellant company and the appellant company admitted that the export obligation could not be fulfilled and there was violation of conditions as per Notification No. 93/2004-CUS dated 10.09.2004. The said letter of the DGCEI dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed calculation of Duty along with the said order vis- -vis Raw material giving quantity of raw material, Duty liability, Additional Duty and Interest at the rate of 15% Per Annum. 7.1 Thus, in the Order of DGCEI the amount of Duty and Interest has been specifically mentioned. 8. The relevant part of the notification No. 93/2004-Cus dated 10.09.2004 is reproduced here as under : Quote, (iii) that the importer at the time of clearance of the imported materials executes a bond with such surety or security and in such form and for such sum as may be specified by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, binding himself to pay on demand an amount equal to the duty leviable, but for the exemption contained herein, on the imported materials in respect of which the conditions specified in this notification have not been complied with, together with interest at the rate of fifteen per cent. per annum from the date of clearance of the said materials : Unquote. 9. The plain reading of the notification No. 93/2004-Cus dated 10.09.2004 explains that Government had exempted payment of Duty, Additional Duty for Import against Adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i in the case of Shankar Trading Co P Ltd Vs CIT 342 ITR 81(Del) has held as under : Quote, 7. Having considered the arguments advanced by the learned counsel for the parties, we find that the Income-tax Appellate Tribunal has rejected the claim of the assessee only on the ground that the amount of interest of Rs.10,04,408 did not fall within the expression any sum payable used in section 43B of the said Act. However, we find that section 17A(2) of the Himachal Pradesh General Sales Tax Act, 1968, specifically provides that if the amount of tax or penalty due from a dealer is not paid by him within the period specified in the notice of demand or, if no period is specified within thirty days from the service of such notice, the dealer shall, in addition to the amount of tax or penalty, as the case may be, be liable to pay simple interest on such amount at the rate of one percentum per month for the first thirty days and for the period subsequent thereto at the rate of one and a half percentum per month. It is, therefore, clear that when there is a demand of the tax and that is not paid within the period specified in the demand or within thirty days if no period is specified i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
