TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 107
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....es when the petitioner had surrendered the MEIS scrips, the petitioner had paid interest, since the amount was negligible. According to the learned counsel for the petitioner, as per Section 28AA of the Customs Act, only in cases where there is a delay in payment of customs duty, interest can be claimed. He would submit that insofar as surrendering the un-utilized MEIS scrips is concerned, Section 28AA of the Customs Act does not get attracted and no interest can be demanded by the Customs Authorities. 4. In support of the said contention, the learned counsel for the petitioner also drew the attention of this Court to the decision of the Kerala High Court in the case of Braddock Infotech Private Ltd., Vs. Joint Director General of Foreign Trade, Ernakulam, Director General, Directorate General of Foreign Trade, New Delhi reported in 2024 (12) TN 18. He would submit that the Kerala High Court in the aforesaid decision by following the decision of the Hon'ble Supreme Court in the case of J.K.Synthethics Ltd., Vs. Commercial Tax Officer reported in (1994) 4 SCC 276 has held that for charging interest, there must be a specific charging Section under the Customs Act. 5. The learne....
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....seen from the counter filed by the respondents 3, 5 and 6 they themselves have admitted in paragraph 3.19 that the original holder of scrip may refund the over claim by surrendering the scrip whether partially utilized or fully un-utilized without interest. In the case on hand, the petitioner has surrendered the un-utilized MEIS scrips with the respondents. The petitioner is also an eligible person to avail the benefit of the MEIS scheme. Having surrendered the un-utilized MEIS scrips with the respondents, the question of payment of interest as claimed in the impugned demand does not arise. Even according to the respondents, as seen from their counter, interest is not payable by the petitioner. The relevant portion is reproduced hereunder: "The original holder of scrip, however, may refund such over claim by surrendering the same scrips whether partially utilized or fully un-utilized, without interest." 9. Section 28AA of the Customs Act, 1962 reads as follows:- 28AA. Interest on delayed payment of duty- (1) Notwithstanding anything contained in any judgment, decree, order or direction of any court, Appellate Tribunal or any authority or in any other provision of this Act or....
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....hy he should not pay the amount specified in the notice: Provided that before issuing notice, the proper officer shall hold pre-notice consultation with the the person chargeable with duty or interest in such manner as may be prescribed; (b) the person chargeable with the duty or interest, may pay before service of notice under clause (a) on the basis of, - (i) his own ascertainment of such duty; or (ii) the duty ascertained by the proper officer, the amount of duty along with the interest payable thereon under section 28AA or the amount of interest which has not been so paid or part-paid. Provided that the proper officer shall not serve such show cause notice, where the amount involved is less than rupees one hundred. (2) The person who has paid the duty along with interest or amount of interest under clause (b) of subsection (1) shall inform the proper officer of such payment in writing, who, on receipt of such information, shall not serve any notice under clause (a) of that sub-section in respect of the duty or interest so paid or any penalty leviable under the provisions of this Act or the rules made thereunder in respect of such duty or interest: Provided that wh....
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....y so accepted by that person, within thirty days of the receipt of the notice and inform the proper officer of such payment in writing. (6) Where the importer or the exporter or the agent or the employee of the importer or the exporter, as the case may be, has paid duty with interest and penalty under sub-section (5), the proper officer shall determine the amount of duty or interest and on determination, if the proper officer is of the opinion - (i) that the duty with interest and penalty has been paid in full, then, the proceedings in respect of such person or other persons to whom the notice is served under subsection (1) or sub- section (4), shall, without prejudice to the provisions of sections 135, 135A and 140 be deemed to be conclusive as to the matters stated therein; or (ii) that the duty with interest and penalty that has been paid falls short of the amount actually payable, then, the proper officer shall proceed to issue the notice as provided for in clause (a) of sub-section (1) in respect of such amount which falls short of the amount actually payable in the manner specified under that sub-section and the period of two years shall be computed from the date of rec....
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...., issued specific direction or order to keep such matter pending; or (d) the Settlement Commission has admitted an application made by the person concerned, the proper officer shall inform the person concerned the reason for non-determination of the amount of duty or interest under sub-section (8) and in such case, the time specified in subsection (9) shall apply not from the date of notice, but from the date when such reason ceases to exist. (10) Where an order determining the duty is passed by the proper officer under this section, the person liable to pay the said duty shall pay the amount so determined along with the interest due on such amount whether or not the amount of interest is specified separately. (10A) Notwithstanding anything contained in this Act, where an order for refund under sub-section (2) of section 27 is modified in any appeal and the amount of refund so determined is less than the amount refunded under said sub-section, the excess amount so refunded shall be recovered along with interest thereon at the rate fixed by the Central Government under section 28AA, from the date of refund up to the date of recovery, as a sum due to the Government. (10B) A....