2003 (5) TMI 340

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....rectorate of Revenue Intelligence, Chennai answerable to the Commissioner of Customs (Sea), Custom House, Chennai. The said application was admitted by this Bench vide Admission Order No. 16/2001, dated 29-11-2001. 2. The facts in brief relevant for disposal of the application are that the applicant obtained two quantity based advance licences bearing No. 3491572, dated 17-3-95 and 2040439, dated 30-3-1995 from JDGFT, Bangalore which permitted import of raw materials namely, TL-16 optical resin, Di-butyle Malgate, Perkadox with corresponding obligation to export hi-index lenses and 72 MM and 77 MM single vision lenses, for FOB value of  Rs. 70,98,750/- US $ 225000 under each licence. On the basis of specific information, that t....

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....he Revenue submitted that the applicant paid the customs duty and interest only after the DRI took up the investigation. He added that the applicant's plea with reference to their bona fides, especially in the context of approaching the JDGFT and also the Customs for de-bonding of the goods imported as a 100% EOU, have no relevance. He submitted further that the applicant is bound to pay the interest, as per the provisions contained in the EXIM Policy and by virtue of the legal undertaking given by the applicant. In particular, he drew attention to para 128 of the Handbook of Procedures, 1992-1997. He, therefore, concluded by saying that the applicant is liable to pay the interest and they are not entitled for immunities as they paid the du....

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....advance licence, dated 30-3-95. The applicant has responded to the said letter on 10-1-2001, in respect of both the advance licences. Vide letter F. No. 07/02/190/4309/AM 95-96, dated 28-3-2001/F. No. 07/02/190/4404/AM 95, dated 2-4-2001, the JDGFT, Bangalore has adjusted the SIL against the shortfall in exports in respect of both the advance licences. The above act will show that even before the officers of DRI took up the investigation, the applicant had in fact approached the JDGFT for regularisation, as they have failed to fulfil the export obligation. It is also seen that the applicant had paid Rs. 21,05,271/- on 7-9-2000 by a TR 6 challan and also Rs. 42,40,069/- through a DD, dated 26-9-2000. In other words, in about a month of the s....

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....8AB of the Customs Act, 1962 has been invoked. Even otherwise, no interest can be demanded on the strength of sub-section (2) of Section 28AB of the Customs Act, 1962, which itself came into existence much later to the import of the goods, i.e., in 1996 only. Therefore, the Bench holds that the applicant is not liable to pay any interest in this case under the provisions of the Customs Act, 1962. 6. Taking into account all the above facts, the Bench settles the case in terms of Section 127C(7) as follows : (1)         The total duty liability is fixed at Rs. 30,99,664/-. The said amount already having been paid, no further duty is due from the applicant. (2)     ....