1996 (4) TMI 232

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.... the demand has been raised for the reason that the appellants had not paid the interest in terms of Section 47 read with Section 61(3) of the Customs Act, 1962. He has pleaded interest in respect of the goods which have been assessed from the Warehousing is required to be paid. He has pleaded no doubt in terms of Section 47 read with Section 61(3) of the Customs Act, 1962 no period of limitation has been provided for recovery of the interest for the period after seven days of the assessment of Bill of Entry till the clearance of the goods for either consumption or warehousing but the facts remain that the law provides for such interest to be paid and if there is no limitation the period of limitation as provided under the Limitation Act wo....

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....r the period beyond seven days after the assessment of the Bill of Entry and therefore there was a demand for balance interest amount due. He fairly conceded that this demand was raised after two years beyond the period of six months after the clearance of the goods. He has pleaded that inasmuch as under Sec. 61(3) no period of limitation has been prescribed for recovery of interest the department is entitled to claim the interest due in terms of the general period of limitation prescribed under Limitation Act and which is three years. 4.  We have considered the submissions made by both sides. We observe that no period of limitation has been prescribed under Section 61(3). A reasonable period of limitation will have to be read under....

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....cals (supra). The Hon'ble Supreme Court in para 6 has held is reproduced below : "Ld. Counsel appearing for the respondents urged that Rule 12 is unreasonable and violative of Article 14 of the Constitution, as it does not provide for any period of limitation for the recovery of duty. He urged that in the absence of any prescribed period for recovery of the duty as contemplated by Rule 12, the officer may act arbitrarily in recovering the amount after lapse of long period of time. We find no substance in the submission. While it is true that Rule 12, does not prescribe any period within which recovery of any duty as contemplated by the Rule is to be made, but that by itself does not render the Rule unreasonable or violative of Article 14....