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of <h1>Court Quashes Board's Rejection, Emphasizes Need for Reasoned Order</h1> The Court quashed the Board's rejection of the petitioner's plea for waiver of interest under Section 61(2) of the Customs Act, 1962, emphasizing the need ... Warehousing - Interest - Strictures against Board Issues:Challenge to the decision of the Board regarding waiver of interest under Section 61(2) of the Customs Act, 1962.Analysis:1. The petitioner imported machinery for setting up a steel plant and requested waiver of interest amounting to Rs. 4.11 crores. The Board rejected the request citing lack of exceptional reasons. The petitioner challenged this decision in Writ Petition No. 5635 of 2004.2. The Division Bench directed the Board to reconsider the application for waiver of interest, emphasizing the need for a reasoned order. The Board's failure to provide reasons led to the decision being challenged again by the petitioner.3. The Court emphasized that the Board must pass a reasoned order when accepting or rejecting an application for waiver. The lack of reasons and failure to consider special circumstances led to the decision being quashed, and the case remanded back to the Board for reconsideration.4. Despite the Court's direction, the Board once again rejected the petitioner's plea for waiver of interest, stating that no exceptional circumstances existed. The Court reviewed the Board's decision and found a lack of objective consideration and non-application of mind in the decision-making process.5. Consequently, the Court quashed the rejection of the petitioner's plea for waiver of interest and instructed the Board to reconsider the request within two months, emphasizing the need for a reasoned order based on objective consideration of the petitioner's grounds.6. The Court clarified that its previous orders should not be considered as a precedent for interpreting Section 61(2) and left room for future contentions regarding the necessity of recording reasons for refusing to entertain a waiver of interest request.
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