TaxTMI 
TaxTMI 
2009 (8) TMI 47
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.... had imported one Heidelberg Offset Colour printing machine from Germany. The same was purchased through a known person by name Mr. Rajeev Batra of Delhi, who was also in the printing business and deals in purchase and sale of printing machines. According to the petitioner No.2 an amount of Rs.3,80,000/was paid to Shri Rajeev Batra as his commission for arranging purchase and shipment of 72 V speed master printing machine with CPC of 1980 Model available for GBP 55,000. The petitioners were given the certificate dated 29^th March, 1999 from M/s. Machinehandel Presto Type Ronde Tooht, 2, Zhandam stating that machine of 1978 sold to them was in good working condition and that the market value of new machine of manufacture in the year 1978 is of Pounds 1,35,000/and the present value of Pounds 55,000/is very reasonable. The machine was thereafter shipped and received by the petitioner and installed on the petitioners' unit in the 2^nd week of June, 1999. 3. The respondents issued a show cause notice based on intelligence that the petitioners had imported and cleared an old and used offset colour printing machine in contravention of the restriction imposed on the import of old and us....
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.... other party by not paying the amount legitimately due to the latter be asked to pay interest on duty to recompensate such party. The printing machinery, it is pointed out, was brought in contravention of the restrictions imposed on old and used machines. There are various other reasons set out which we need not set out. Suffice it to say that it is the stand of the respondents that considering the powers of the Commission it was within the jurisdiction of the Commission to direct payment of interest. The Settlement Commission having granted waiver of penalty in favour of the respondents herein this Court in exercise of its extra ordinary jurisdiction ought not to interfere with the settlement order in so far as interest is concerned. 6. The Settlement Commission on consideration of the application of the petitioner herein and considering the report of the Commissioner has recorded a finding that the machine was shipped on 17^th April, 1999, after the exemption Notification had been withdrawn. It has further come on record that the year of manufacture was misdeclared as 1978 instead of 1983. The Commission further recorded a finding that the cast of the machine in fact was....
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....er Section 127B. We may gainfully reproduce Section 127C(7) and (9) which read as under:" 129C(7)After examination of the records and the report of the Commissioner of Customs received under subsection (1), and the report, if any, of the Commissioner (Investigation) of the Settlement Commission under subsection (6), and after giving an opportunity to the applicant and to the Commissioner of Customs having jurisdiction to be heard, either in person or through a representative duly authorised in this behalf, and after examining such further evidence as may be placed before it or obtained by it, the Settlement Commission may, in accordance with the provisions of this Act, pass such order as it thinks fit on the matters covered by the application and any other matter relating to the case not covered by the application, but referred to in the report of the Commissioner of Customs or the Commissioner (Investigation) under subsection (1) or subsection (6). (9) Every order passed under subsection (7) shall provide for the terms of settlement including any demand by way of duty, penalty or interest, the manner in which any sum due under the settlement shall be paid and all other matte....
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....xt that we shall have to examine the scope and intent of Section 28 of the Act. Before examining that, we may consider some of the judgments cited at the Bar. On behalf of the petitioners learned Counsel had placed reliance on the judgment of the Supreme Court in the case of Collector of Customs, Calcutta vs. TIN Plate Co. of India Ltd., 1996 (87) E.L.T. 589 (S.C.). The matter pertains to bills of entries which were presented in December, 1983. Section 28AB as it now stands was not on the statute book at the relevant time. The learned Court on a consideration of the issue as to whether without complying with the requirement of Section 28(1) and 28(2) a duty or interest could be levied was pleased to observe on consideration of the Scheme of the Act as under:" Now, as pointed out earlier if action is contemplated under 28(1)(b) it is incumbent (or mandatory) on the part of the Department to serve the assessee a notice requiring him to show cause why he should not pay the amount specified therein. This requirement is in keeping with the Principle of Natural justice." Proceeding further the Court observed as under: "It is incumbent on the part of the Department to issue a sho....
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....in the issue was in the context of interest on warehousing charges. The issue which is under consideration before this Court was not under consideration. Similarly was the judgment of this Court in B.K. Industrial Corporation vs. Union of India 2004 (169) E.L.T. 13 (Bom.). The judgment of this Court in CCE & C. Aurangabad vs. Padmashri V.V. Patil S.S.K. Ltd., 2007 (215) E.L.T. 23 (Bom.) was considering the provisions of the Central Excise Act. The judgment of the Punjab and Haryana High Court in the matter of Falcom Textiles Ltd. vs. Commissioner of Customs, Amritsar 2008 (230) E.L.T. 35 (P. & H.), was also cited. The issue there was in respect of a party aggrieved by the nongrant of immunity from payment of interest. It was in that context that the learned Bench was considering the matter. In our opinion, therefore, none of the judgments cited on behalf of the petitioners nor on behalf of the respondents have really dealt with the issue which has now come up for consideration before us. 17. We may now consider Section 28AB which sets out, that the person liable to pay duty as determined under subsection (2) of Section 28 shall in addition to the duty be liable to pay interest a....