UNION OF INDIA Vs. EICHER MOTORS LTD

JUDGEMENT

(1.) THIS is a reference application made by the Revenue i. e. Commissioner, Central Excise under Section 35h of the Central Excise Act, 1944 against the order, bearing No. 640/2000/b, dated 3-5-2000, passed by CEGAT.

(2.) BY this application the Revenue has sought calling for the reference from the Tribunal on the following question of law which according to the applicant arises out of me impugned order passed by the Tribunal in this case. The questions proposed are as follows: The duty not levied can be said to be recoverable only when a quasi judicial order is made after considering the pleas of the assessee, consequently, the liability to pay less charged Customs duty arose only on the date when Order-in-original was passed by the Commissioner. The provision of Section 28ab enacted by Finance Act, 1996 on 28-9-96 and are adjunct to the provisions of Section 28 and according to which when the importer had willfully misstated the facts or concealed the fact, the interest as prescribed rate was also leviable along with the duty short paid by the importers. Therefore, is CEGAT justified in holding that liability to pay duty arose prior to amendment of Section 28ab in the case and consequently is CEGAT justified in law in holding that interest on confirmed demand was not leviable under Section 28ab in the Customs Act, 1962.

(3.) HEARD Shri V. K. Zelawat, learned Assistant Solicitor General of India for the petitioner.