COMMISSIONER OF CUSTOMS Vs. UMA MERCANTILE PVT. LTD.

JUDGEMENT

(1.) THIS application filed by the Revenue (appellant) seeks stay of operation of the impugned order passed by the Commissioner (Appeals). The goods imported by the respondents were assessed to duty of Customs on 23.8.99 and duty was paid accordingly and the goods cleared. Subsequently, a show cause notice was issued for enhancing the value of the goods. In adjudication of this show cause notice, the Commissioner of Customs revised the assessable value and demanded differential duty of Rs. 5,25,705 from the assessee. This order was passed by the Commissioner on 29.8.2000 and despatched to the party on 14.9.2000. However, it took a long period for the Customs authorities to act upon the Commissioner's order. The revised assessment in terms of the Commissioner's order was done on the Bill of Entry on 22.5.2003 only. Subsequently, on 27.5.2003, the differential duty was paid by the assessee. The dispute involved in the instant case relates to the period for which interest is payable by the assessee on the differential duty. According to the department, interest must be paid from 14.9.2000, while the assessee would pay interest only from 28.5.2003. Interestingly, both sides rely on Section 47 of the Customs Act, 1962.

(2.) AFTER hearing both sides, we come to learn that the provision of Section 47 requires to be interpreted in this case. The impugned order setting aside the proposal for levy of interest from the assessee cannot be allowed to remain as a precedent in these circumstances. Accordingly, there will be stay of operation of the impugned order pending disposal of the appeal. The application filed by the Revenue stands allowed.