TANU HEALTHCARE LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard Mr. Doiphode in support of the petitioner. Mr. Rao appears for the respondents.

(2.) Petitioner seeks to challenge the order passed by the Settlement Commission to the extent it requires the petitioner to pay interest at the rate of 15% under its order dated 2nd May, 2006. This is a case where the petitioner had not honoured the export obligation and thereafter, approached the Settlement Commission with respect to the amount of customs duty. The duty was appropriately settled and the amount of the duty has already been paid. The Settlement Commission has granted immunity from penalty and prosecution. It has, however, awarded interest at the rate of 15%. This has come to be challenged under the present petition.

(3.) While discussing the aspect of levy of interest, the Settlement Commission has specifically said that since the export obligation was not met, the applicant was liable to pay interest in terms of the bond executed by it to the DGFT. The Commission has however, noted that the rate of interest originally agreed at 24% was subsequently reduced to 15% p.a. vide Public Notice No. 9/2002-2007, dated 22nd May, 2003 for all the pending cases of EO default. In view thereof, the Commission has levied interest at 15%.