Rectification of Mistake granted by CESTAT for Customs Act error in Final Order.

The Rectification of Mistake application under section 129B(2) of the Customs Act was allowed by the Appellate Tribunal CESTAT, Bangalore. The Tribunal rectified the mistake in the Final Order dated 31-7-2007 by setting aside the interest demanded, as there was no provision for such demand under Notification No. 96/93 or the Customs Act. The judgment was pronounced on 11-3-2008 by Member (T) T.K. Jayaraman.

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Issues involved: Application for Rectification of Mistake u/s 129B(2) of the Customs Act, 1962 regarding demand of interest in Final Order dated 31-7-2007 by the Appellate Tribunal CESTAT, Bangalore.

The applicant raised the issue that the demand of interest was illegal and untenable as there was no provision under Notification No. 96/93 or the Customs Act for such demand. The Appellate Authority failed to address this contention, causing injustice and hardship to the appellant.

The Tribunal acknowledged the lack of a clear finding on the leviability of interest in the Final Order. It was noted that the notification 96/93 and the Customs Act did not provide for the demand of interest on duty foregone. Consequently, the Tribunal rectified the mistake by setting aside the interest demanded, stating that "As there is no provision for demand of interest under notification 96/93, the interest demanded is set aside." The Rectification of Mistake application was allowed, and the finding on interest was incorporated into the Final Order.

The judgment was pronounced in open court on 11-3-2008 by Member (T) T.K. Jayaraman.

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