2024 (12) TMI 18

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....ulated for Service Exports from India in order to encourage/maximise export of certain notified services. Ext.P1 is a copy of public notice No. 3/2015-20 dated 01-04-2015 issued by the 2nd respondent enumerating a list of eligible services, rates and conditions for rewards under the Service Exports from India Scheme (hereinafter referred to as 'the Scheme'). 2. The petitioner was considered eligible and was granted a duty credit scrip having the value of Rs. 8,91,934/- (Eight Lakhs Ninety-one Thousand Nine Hundred Thirty-four only). However, on the basis of certain audit objections, the competent authority found that the petitioner was not entitled to the benefit of the Scheme. According to the competent authority, the services rendered by....

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.... of the 1962 Act cannot be sustained. The learned counsel for the petitioner relied on the judgment of the Constitution Bench of the Supreme Court in J.K. Synthetics Ltd. V Commercial Tax Officer; (1994) 4 SCC 276, V.V.S. Sugars v. Government of Andhra Pradesh and others; (1999) 4 SCC 192 and Bimal Chandra Banerjee v. State of M.P; (1970) 2 SCC 467 and submits unless the right to collect interest is supported by plenary provisions the demand for interest cannot be justified. 4. The learned Standing counsel appearing for the respondents would submit that the Foreign Trade Policy applicable at the relevant time (01-04-2015 - 31-03-2020) clearly provided in paragraph 3.19 (a) that if any amount is found to be payable by any person who has bee....

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....rest under Section 28AA of the 1962 Act as such levy must be supported by plenary legislation. In J.K. Synthetics Ltd. (supra) a 5 Judge Bench of the Supreme Court held thus:- "16. It is well-known that when a statute levies a tax it does so by inserting a charging section by which a liability is created or fixed and then proceeds to provide the machinery to make the liability effective. It, therefore, provides the machinery for the assessment of the liability already fixed by the charging section, and then provides the mode for the recovery and collection of tax, including penal provisions meant to deal with defaulters. Provision is also made for charging interest on delayed payments, etc. Ordinarily the charging section which fixes the ....

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....d out was that provision for charging interest was, it seems, introduced in order to compensate for the loss occasioned to the Revenue due to delay. But then interest was charged on the strength of a statutory provision, may be its objective was to compensate the Revenue for delay in payment of tax. But regardless of the reason which impelled the Legislature to provide for charging interest, the Court must give that meaning to it as is conveyed by the language used and the purpose to be achieved. Therefore, any provision made in a statute for charging or levying interest on delayed payment of tax must be construed as a substantive law and not adjectival law. So construed and applying the normal rule of interpretation of statutes, we find....