2010 (3) TMI 509

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....umit Kumar, DR, for the Respondent. [Order per : D.N. Panda, Member (J)]. - The precise question involved is as to whether the appellant had operated under a bond for importing the brass items under Customs Notification No. 30/97-Cus., dated 1-4-97 and shall be required to pay interest @ 24% per annum on the value of material cleared for non-fulfilment of export obligation or shall be liable to....

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....tio laid down by the Apex Court in the case of Rexnord Electronics & Control Ltd. v. UOI reported in 2008 (224) E.L.T. 184 (S.C.). According to him, an assessee operating under a bond is subject to the conditions of the bond and interest prescribed in terms of such condition shall become payable irrespective of any statutory provisions prescribing rate of interest on the defaulted amount. Therefor....

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....ions but clearly brings out that even being governed by the bond condition, the rate of interest shall become payable in terms of the Notification No. 30/97-Cus., dated 1-4-97, the reduced rate prescribed by amendment of law, to 15% as against 24% in terms of the amendment made by Section 127(1) of Finance Act, 2003 cannot be ignored. Once a notification governing an issue got amended by statutory....