2019 (10) TMI 65

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.... duty liability and as recorded by the Settlement Commission, the liability to duty, as demanded in the show cause notice has been remitted in full by the petitioner. As regards immunity from payment of interest, the contention of the revenue was that the payment of interest ought to be as per the terms of contract between the petitioner and the authorities, being 15%, whereas the Settlement Commission, taking note of the changes in Foreign Trade Policy and the provisions of Section 127 H of the Customs Act, 1962 dealing with the power to grant immunity from interest, passed an order granted partial immunity from payment of interest in excess of 10% simple interest per annum. 4.The petitioner relies on two decisions of this Court in the ca....

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....Rexnord Electronics (supra) are discussed as follows: 19. In this regard, now, I may refer to the judgment of the Hon'ble Supreme Court in Rexnord Electronics and Controls Limited vs. Union of India and others, reported in (2008) 12 Supreme Court Cases 156, the case referred to above. That was also a case, where a bond executed in terms of the Customs Notification No. 160/92, dated 20.04.1992 (the notification, which is the subject matter in the present Writ Petition) was considered. In that case, the exporter had executed a bond, thereby, agreeing to pay interest in the event of his failure to fulfil the export obligation. But, he did not pay interest. In the meanwhile, he approached the Settlement Commission under Section 127-H of t....

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....r the Scheme, the Hon'ble Supreme Court has held that the Settlement Commission had no power to waive the interest, which was required to be paid in terms of the bond executed. 20. While concluding so, the Hon'ble Supreme Court, in the said judgment i.e.,Rexnord Electronics and Controls Limited vs. Union of India and others, reported in (2008) 12 Supreme Court Cases 156, had occasion to elaborately deal with the Scheme under the Foreign Trade (Development and Regulation) Act, 1992 and the customs duty payable under the Customs Act. In paragraph No.16 of the said judgment, the Hon'ble Supreme Court has framed the following question:- "16. The core question which, therefore, arises for consideration is as to whether the term "....