2011 (2) TMI 539

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....respect of a ship imported for breaking purpose on 28.09.2004 and the same was assessed provisionally in view of the fact that classification of fuel and oil was in dispute. Therefore, the final assessment order in respect of this bill of entry was issued on 11.1.2010. In the final assessment order, differential duty of Rs. 1,68,852/- with interest was demanded under the provisions of Section 18(2....

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....erest 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 levied. As regards decision of the Tribunal in the case of Sterlite Industries (I) Limited vs. Commissioner of Customs, Tuticorn 2008 (223) ELT 633 (Tri. Chennai), relied u....

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....r 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 case is whether interest is leviable when the provisional assessment was resorted to prior to 13.7.2006 i.e. the date of introduction of sub-Section 18 (3) in the Custo....

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....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 stand allowed.   5. I find that the issue is squarely covered by the decision in the case referred above. In this case also, the provisional assessment was resort....