TaxTMI 
TaxTMI 
2011 (2) TMI 489
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....eaking purpose and since the dispute relating to classification of fuel and oil in the tank in the engine room had not been settled, the bill of entry was assessed provisionally. Subsequently, vide final assessment order dated 12.11.2009, the Deputy Commissioner of Customs had finalized the assessment and demanded the differential duty of Rs. 1,30,122/- with interest under the provisions of Sectio....
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....e decision of the Hon'ble Supreme Court in the case of M/s. Pratibha Processors vs. UOI 1996 (88) ELT 12 (SC), wherein the Hon'ble Supreme Court categorically held that interest is compensatory in character and is imposed on an assessee who has withheld payment of any tax as and when they are due and payable. Section 18 of Customs Act is only procedural provision and therefore, interest has to be ....
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....d reads as under :- (3) The importer or exporter shall be liable to pay interest, on any amount payable to the Central Government, consequent to the final assessment order under sub-Section (2), at the rate fixed by the Central Government under Section 28AB from the first day of the month in which the duty is provisionally assessed till the date of payment thereof. 4. The question in this ....
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.... this basis, we hold that no interest can be levied under Section 18(3) of the Customs Act on the differential amounts of duty paid by the appellants upon finalisation of the provisional assessments which were made prior to 13-7-2006, the date on which Section 18(3) ibid came into force. In other words, the impugned orders are liable to be set aside. It is ordered accordingly. All these appeals st....