PREMIER POLYTRONICS PVT. LTD Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) HEARD both sides.

(2.) SHRI C. Saravanan, learned Advocate appearing for the Appellants states that the impugned goods were exported to China for exhibition availing the benefit of exemption under Notification No. 263/79 dated 23.9.1979 following the prescribed procedure of export under bond. The impugned goods were subsequently imported and cleared on 21.3.2003 without payment of duty. Later on, show -cause notice dated 27.8.2003 was issued to the Appellants demanding duty and interest on the same. The Appellants have paid the duty demanded on 24.9.2004. The Appellants have challenged the demand of interest through this appeal on the ground that there was no willful or intentional mis declaration on the part of the Appellants and therefore the interest on the delayed payment of duty is not payable. The Appellants have also taken the ground that the delay in payment of duty was not on account of any fault or mistake on their part.

(3.) THE learned Advocate argues that under Sl. No. 3 of Notification No. 94/96 -Cus. dated 16.12.1996 the rate of duty is nil for goods other than those falling under Sl. Nos. 1 & 2 and states that the nil rate of duty is applicable in respect of the Appellants and consequently no interest is payable. He also states that the clearance of the export of goods under bond was only on account of following the procedure prescribed under Notification No. 263/79 and therefore the Appellant's case does not come under Sl. No. 1(d) of Notification No. 94/96.