2014 (8) TMI 969

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....Pvt. Ltd. had imported machinery under project import vide Bill of entry No. 655769, dated 8-3-2006. It was assessed provisionally after furnishing appropriate bond along with Cash Security Deposit of Rs. 20,52,600/- by challan dated 3-3-2006. After completion of all the requirement & conditions of the project import, they had applied vide letter dated 10-7-2006 for finalization of provisional assessment and for release of the bond and the cash security deposit amount of Rs. 20,52,600/-. Refund of Security deposit of Rs. 20,52,600/- was sanctioned and paid to them vide Cheque No. 372495, dated 21-1-2008. However on pressing repeatedly for interest, vide the letter No. S/5-25/06CC, dated 21-8-2008, issued by Asst. Commissioner of Customs, co....

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....s. The appellants vide their letter dated 27-8-2007 furnished clarification from the Chartered Accountant that the security deposit of Rs. 20,52,600/- is included under the head "Advances Recoverable in cash or in kind in the Balance Sheet as on 31-3-2006 has been shown separately. It was also certified by the Chartered Accountant that this amount has been kept as deposit from their own sources and has not been recovered from the customers, nor included the impact of this deposit in their cost of production. Hence, it has no effect on their sale price. Thus, after observing necessary checks and scrutiny for the purpose of granting refund of the aforesaid Cash security deposit amount of Rs. 20,52,600/- paid by the importer, at the time of re....

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.... the Board. 7. It is further observed that the refund pertains to the period from July 2006 till 21-1-2008. It is also observed that the amount refunded was deposited towards provisional assessment. The circular and the case laws relied upon by the appellants deals with the Section 35F of Central Excise Act, 1944 and Section 129E of the Customs Act, 1962. The deposit covered under these circulars and the case laws are in connection with the pending appeals. Such deposits are materially different with the deposit made towards provisional assessment. Therefore, the circular and the case laws cited by the appellants are not applicable in the instant case." 4. The learned Counsel for the appellant states that there has been dela....