Tribunal upholds Commissioner's interest calculation order under Customs Act, 1962.

The tribunal upheld the Commissioner's order, dismissing the appeal and affirming the interest calculation from the date of importation as per the Customs Act, 1962. The appellants' challenge against the interest rate and request for installment payments were not accepted, with the tribunal emphasizing the correct application of interest rates and the calculation basis.

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Issues:
1. Challenge against the order of Commissioner regarding the interest rate charged.
2. Dispute over the computation of interest and request for installment payment.
3. Interpretation of DGFT policy circular reducing interest rate from 24% to 15%.
4. Appellant's argument for interest to be charged from the date of importation.

Analysis:
1. The appeal challenged the Commissioner's order directing the payment of interest at 24% per annum for a specific period and 15% thereafter. The appellants imported capital goods under the EPCG scheme and executed a bond to pay interest on the duty saved if export obligations were not met. The tribunal confirmed the duty recovery along with interest, leading to the appellants disputing the interest rate and requesting installment payments.

2. The appellants disputed the computation of interest, arguing for a lower rate of 15% instead of 24%. They also sought permission for installment payment. The High Court stayed auction proceedings and directed the department to decide on the matter. The Commissioner's order followed, leading the appellants to appeal before the tribunal.

3. The appellants relied on a DGFT policy circular reducing the interest rate to 15%. However, the tribunal noted that the circular did not retrospectively reduce the interest rate from 24% to 15%. The reduced rate applied only from the date of the circular, not affecting cases prior to its issuance. The Commissioner correctly applied the interest rate from the date specified in the circular, which was after the period in question.

4. The tribunal dismissed the appeal, emphasizing that interest had to be calculated from the date of importation, not the date of the license issuance. The Commissioner's order allowed interest computation from the importation date, aligning with the appellants' claim. As the demand for interest was confirmed along with the duty, the issue of interest calculation from the importation date was deemed settled and not a valid ground for appeal.

In conclusion, the tribunal upheld the Commissioner's order, dismissing the appeal and affirming the interest calculation from the date of importation as per the Customs Act, 1962.

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