TaxTMI 
TaxTMI 
2025 (5) TMI 1765
X X X X Extracts X X X X
X X X X Extracts X X X X
....13 by filing 27 Bills of Entry. As per the EDI system, the Countervailing Duty (CVD) was assessed, to be paid at the rate of 6% ad valorem, and thus the appellant paid the CVD at the rate of 6%. The goods were allowed to be cleared. 3. Later on, it was noticed that rate of CVD on the said goods was 12%. Upon being pointed out by the Department, the appellant paid the differential duty payable. 4. A Show Cause Notice was issued on 23.05.2013 for appropriation of the amount of CVD deposited by the appellant and also to demand interest under Section 28AA of the Customs Act, 1962. 4.1. The above Show Cause Notice was adjudicated vide the impugned order wherein the payment of CVD made by the appellant was appropriated. The ld. adjudicat....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the appellant. Therefore, the issue that is before us is whether, in the facts and circumstances of this case, interest is payable by the appellant on such differential duty or not. 10. The said issue has been examined by this Tribunal in the case of M/s. Titagarh Wagons Ltd. (supra) wherein this Tribunal observed as under: - "4. We have heard the Ld.AR for the Department, who supports the Department's stand and states that nothing prevented the importer to pay duty at appropriate rates of their own accord, as the rate of CVD leviable was 12% and not 6%. 5. To examine the issue it is necessary that Section 28AA as it then stood is taken note of. The same is reproduced hereunder for ready reference- SECTION....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t at any subsequent stage of such payment.]. It be noted that sub-section 2 of Section 28AA mandates payment of interest at appropriate rates, to be paid by a person liable to pay duty in terms of Section 28. As the Appellant has sought refuge under Section 47 of the Customs Act stating that the short-payment in duty need to be considered as a case therein and not as covered with reference to short payment of duty under Section 28. Sub-section 1 of Section 47 as it then read is reproduced hereunder- Section 47-Clearance of goods for Home Consumption. [(1)] Where the proper officer is satisfied that any goods entered for home consumption are not prohibited goods and the importer has paid the import duty, if any, as....
X X X X Extracts X X X X
X X X X Extracts X X X X
....interest on the short levied duty of Rs. 1,77,47,250/- (one crore seventy seven lacs forty seven thousand and fifty only) at the applicable rate to be paid by the noticee M/s. Titagarh Wagons Ltd. in terms of section 28AA of the Customs Act, 1962. (iii) I refrain from confiscation and imposition of fine and penalty as the noticee M/s. Titagarh Wagons Ltd. has paid the short levied amount as demanded and they have not suppressed/mis-declared the facts at the time of importation but duty was short levied due to EDI system error. 7. While we note that it is settled law that interest is compensatory in character and not punitive, we also take note of the fact that the short levy in the present case, in no way can be attributed....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e is somewhat similar, while in the cited case it was a change in the rate of duty in the time interlude between assessment and grant of entry inwards, in the present case it is a variation of duty rates that between the time of presentation of Bill of Entry and the enactment of the Finance Bill. The fact is that in both the cases, upon payment of import duty, out of charge order for home clearance, by the Proper Officer under Section 47 of the Act was appropriately issued, and it was only subsequent that demand for differential duty was raised. There being no delay in payment of this differential in duty it was held that no interest was therefore payable, as there was no late payment. 7.1 Relevant paras of the said decision reads ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rnment, by notification in the Official Gazette), on such duty till the date of payment of said duty." As is clear from the reading of the above provisions, sub-section (2) of Section 47 provides for interest in those cases where importer has not paid the import duty assessed in terms of sub-section (1) of Section 47 within a period of 2 days from the date on which the assessed Bill of Entry is returned to him for payment of duty in the present case, the respondent has admittedly paid the duty within a period of 2 days from the date of assessed Bill of Entry and there is no dispute about the same. I find no justifiable reason to confirm the interest against the importer for alleged contravention of Section 47." 8. In view ....