SRISALYA EXPORTS PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) These two appeals arise out of the common order passed in W.P. No. 14843/2006 and W.P. No. 14844/2006 respectively, being aggrieved by the common order of the learned single Judge dated 26-8-2008, wherein the Writ Petitions have been dismissed declining: the prayer of the petitioner in W.P. No. 14843/2006 to quash the order No. 55/2006, dated 14-9-2006 passed in Application No. 69/2006, in so far as it relates to demand of interest on the duty amount paid prior to receipt of show cause notice on 18-4- 2006 and the prayer of the petitioner in W.P. No. 14844/2006 to quash the Order No. 53/2006 dated 12-9-2006 in Application No. 54/2006 passed by the second respondent in so far as it relates to demand of interest on the duty amount paid prior to issue of show cause notice dated 23-3-2006.

(2.) The Writ Petitioners are assessees under the provisions of the Customs At, 1962 (for short, the Act'). They had invoked the jurisdiction of the Settlement Commission in terms of Section 127C(7) of the Act. The Settlement Commission had settled the duty liability of the petitioner W.P. No. 14843/2006 in respect of imported patchouli oil SPX (pure), which had been misdeclared by it as patchouli oil STD and it had quoted a lower rate to evade payment of full customs duty of Rs. 2,82,63,409/-, as against which, it had paid the duty of Rs. 1,62,27,486/-. Accordingly, the Settlement Commission passed an order granting immunity to the petitioner from payment of fine, penalty and prosecution under the Act and directed the petitioner to pay simple interest at 10% per annum for the period when the duty become due till the actual date of payment.

(3.) Being aggrieved by the order passed by the Settlement Commission in so far as it relates to the liability to pay interest on the unpaid duty amount at 10% per annum, writ petitions were filed before the learned single Judge contending that there was no conscious application of mind by the Settlement Commission to the question of lavy of interest and since the Settlement Commission had accepted the proposal of the respective petitioners and had waived payment of fine, penalty and prosecution under the Act, the payment of interest also ought to have been exempted. Learned single Judge held that the Settlement Commission had consciously considered the terms of the settlement as also the question of payment of interest by the respective petitioners. The interest payable on non-paid duty amount under Section 28AB of the Act, would have been between 10 and 36 per cent and the relevant point of time, in terms of the notification issued by the Central Government, the interest leviable was 18% per annum, however, the Settlement Commission has reduced the interest liability on the non-paid duty to 10% per annum and has expressly granted immunity to the petitioners from levy of fine, penalty and prosecution under the Act, and accordingly, dismissed the writ petition No. 14843/2006 by order dated 26-8-2008. Following the said decision W.P. No. 14844/2006 was also dismissed as the same question was involved in the said writ petition. Being aggrieved by the said common order passed by learned single Judge, writ petitioners have preferred these appeals.