Page 235 - ELT_1st June 2020_VOL 372_Part 5th

2020 ] IN RE : HARISONS INDUSTRIES 769

sibility - First proviso to Section 127B of Customs Act, 1962 provides for pay-
ment of interest due under Section 28AA of Customs Act, 1962 but interest in
impugned show cause notice demanded under Notification No. 97/2004-Cus.
and Bond dated 22-5-2007 - Since interest not demanded under Section 28AA
ibid, bar of clause (c) of first proviso to Section 127B ibid technically not appli-
cable - Application survives, though applicant had not paid interest due on
accepted duty liability - Section 127B of Customs Act, 1962. [paras 6.4, 6.5, 6.6]
Settlement Application maintainable
[Order]. - This order is being passed to decide the issue of admissibility
of above settlement application filed under Section 127B of the Customs Act,
1962 (hereinafter referred to as ‘the Act’) by M/s. Harisons Industries, situated at
Hastings Chambers, 7C, Kiron Shankar Roy Road, Kolkata-700 001 (hereinafter
referred to as “the Applicant”) for settlement of dispute arising out of the show
cause notice No. 32/DRI/HZU-BRU/ENQ-32/2017/214, dated 24-5-2018 issued
by ADG, DRI Hyderabad Zonal Unit and answerable to Commissioner Customs
(Import-II) Mumbai Custom House (hereinafter referred to as “the SCN”). The
said application was received in the registry on 22-8-2019 and has been given
registration No. SA(C)78/2018.
2. The Bench will, for the limited purpose of deciding the admissibility,
consider the facts, as are necessary to decide the issue.
3. The SCN alleges non-fulfilment of Export Obligation and conditions
relating to goods imported under EPCG scheme and accordingly demands cus-
toms duty of Rs. 1,26,96,503/- under Notification No. 97/2004-Cus., dated 17-9-
2004 along with interest as applicable under the said Notification.
4. The applicant in the application has accepted an amount of
Rs. 17,63,545/- [Sr. 10(a) of the Application], which is more than the eligibility
threshold of Rs. 3 Lakh prescribed under Section 127B of the Act. However, scru-
tiny of the application by the Secretariat of the Commission revealed following
deficiencies :
(a) Application has been filed only in single set and not in quintuplicate
as required under provision of Rule 3(3) of Central Excise (Settle-
ment of Cases) Rules, 2007.
(b) Against Sl. No. 10(b), interest on the accepted duty of
Rs. 17,63,545/- it is mentioned as “N.A.”
Accordingly vide letter F. No. 35/CUS/AG/2019-SC(MS)-Appl. No. SA(C)78/
2019, dated 26-8-2019 a notice was issued to the applicant to explain in writing
on or before 4-9-2019 as to why the application should be allowed to be proceed-
ed with on the abovementioned grounds and also to be present for the hearing
fixed on 4-9-2019.
5. In response, the Applicant vide letter dated 3-9-2019 submitted five
sets of the application and informed that their counsel would not be able to at-
tend the hearing to be held on 4-9-2019 and requested for another date for hear-
ing. They also submitted that the payment of Rs. 17,63,545/- made by them was
inclusive of interest as already mentioned at page 16 of their application.
Amount of Rs. 5,00,000/- was the duty liability paid by them vide Challan No.
3210 dated 29-10-2018 and the amount Rs. 12,63,545/- was the interest paid vide
Challan No. 213 dated 19-8-2019. They had made error at S. No. 10(b) by men-
EXCISE LAW TIMES  1st June 2020  235