TaxTMI 
TaxTMI 
2024 (1) TMI 471
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....s of obtaining EPCG license therefore, under the license no customs duty is required to be paid. The customs department has issued no dues certificate and accordingly, the unit was de-bonded. Later on, the audit raised objection that the appellant did not have EPCG license therefore, unit could not have been de-bonded and the departmental authority has erroneously issued no dues certificate. On pointing out by the department the appellant have paid required customs duty and also paid interest however, show cause notice dated 24.01.2013 was issued by the department proposing the demand of customs duty of Rs. 17,54,676/- and proposing appropriation of the same as the same was paid by the appellant. The demand of interest was also made since t....
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....e duty. Therefore, it is clearly a malafide on the part of the appellant. As regards the submission of the learned Counsel that their case is covered by proviso to sub-section (2) to Section 28 and show cause notice cannot be issued, for ease of reference, the said provision is reproduced below:- "Section 28. [Recovery of [duties not levied or not paid or short-levied or short- paid] or erroneously refunded. - (1) Where any [duty has not been levied or not paid or short-levied or short-paid] or erroneously refunded, or any interest payable has not been paid, part-paid or erroneously refunded, for any reason other than the reasons of collusion or any willful mis-statement or suppression of facts- (a) the proper off....
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.... or interest : [Provided that where notice under clause (a) of sub-section (1) has been served and the proper officer is of the opinion that the amount of duty along with interest payable thereon under section 28AA or the amount of interest, as the case may be, as specified in the notice, has been paid in full within thirty days from the date of receipt of the notice, no penalty shall be levied and the proceedings against such person or other persons to whom the said notice is served under clause (a) of sub-section (1) shall be deemed to be concluded.] (3) Where the proper officer is of the opinion that the amount paid under clause (b) of sub-section (1) falls short of the amount actually payable, then, he shall proceed to....
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....tion (4) by the proper officer, such person may pay the duty in full or in part, as may be accepted by him, and the interest payable thereon under section 28AA and the penalty equal to [fifteen per cent.] of the duty specified in the notice or the duty so accepted by that person, within thirty days of the receipt of the notice and inform the proper officer of such payment in writing." From the above provision, it is observed that the provision for non-issuance of show cause notice is applicable only when the assessee paid the duty and interest and informed in writing to the department. Whereas, in the present case, firstly the extended period was informed on the ground that there is suppression of facts and malafide on the part of the ap....