2019 (9) TMI 1430

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....a-700 001 (hereinafter referred to as "the Applicant") for settlement of dispute arising out of the show cause notice No. 32/DRI/HZU-BRU/ENQ-32/2017/214, dated 24-5-2018 issued by ADG, DRI Hyderabad Zonal Unit and answerable to Commissioner Customs (Import-II) Mumbai Custom House (hereinafter referred to as "the SCN"). The said application was received in the registry on 22-8-2019 and has been given registration No. SA(C)78/2018. 2. The Bench will, for the limited purpose of deciding the admissibility, consider the facts, as are necessary to decide the issue. 3. The SCN alleges non-fulfilment of Export Obligation and conditions relating to goods imported under EPCG scheme and accordingly demands customs duty of Rs. 1,26,96,503/-....

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....00,000/- was the duty liability paid by them vide Challan No. 3210 dated 29-10-2018 and the amount Rs. 12,63,545/- was the interest paid vide Challan No. 213 dated 19-8-2019. They had made error at S. No. 10(b) by mentioning "N.A." and requested that the Sl. No. 10 be amended to read as; "10.  (a)  Amount of duty accepted as payable for settlement. Rs. 5,00,000/-   (b)  Interest on the said admitted duty. Rs. 12,63,545/-"  6.1 The Bench has carefully gone through submissions of the applicant. Out of the two deficiencies (listed at Para 4 above), the applicant has rectified one by filing the requisite number of sets as required under the rules. But as regards the other deficiency, i.e. non-payment of i....

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..... Scrutiny of the said challans (at page 35 & 36 of the Paper Book) also reveals that the payments were towards duty and not interest. Thus, the contention of the applicant that the accepted amount of Rs. 17,63,545/- was inclusive of interest is not factually correct. 6.4 Accordingly, the Bench finds that no interest has been paid on the accepted duty amount and the deficiency subsists. Under normal situation, non­payment of interest would have attracted the bar of admissibility under Section 127B of the Act. But, on closer scrutiny of the provision of Section 127B of the Act vis-a-vis the SCN, we find that the relevant charging section of the SCN, i.e. Para 15 (i) & (ii) reads as under : "15. Now, therefore, M/s. Harrisons....