Page 196 - ELT_1st August 2020_Vol 373_Part 3

378 EXCISE LAW TIMES [ Vol. 373

46. In my view, it is not open for the petitioners to state that the re-
spondents had no authority to demand interest on the Customs duty foregone
even though the petitioners failed to discharge export obligation undertaken by
them.
47. In the case of the petitioner in W.P. No. 22282 of 2009 that there was
a 27% shortfall in the discharge of export obligation. Accordingly, the petitioner
was called upon to pay proportionate Customs duty and interest at 15% between
16-9-1993 up to 10-12-2003 even though the petitioner had executed a bond un-
dertaken to pay interest at 24%.
48. As on 11-12-2003, the respondents have arrived as the proportionate
customs duty demanded by the petitioner as Rs. 2,52,090/- and interest at 15%
amounting to Rs. 3,86,840/- totaling to Rs. 6,38,000,930/- and after adjusting the
aforesaid amount by encashing the bank guarantee amounts of Rs.4,10,000/-, the
petitioner was called upon to pay the balance amount of Rs. 2,28,930/-.
49. In the case of the petitioner in W.P. No. 38158 of 2003, the respond-
ents have called upon the petitioner to pay the Customs duty foregone at the
time of import of capital goods amounting to Rs. 11,25,500/- and interest thereon
for the period between 3-1-1995 to 15-11-2011 amounting to Rs. 18,53,752/-.
Accordingly, a demand of Rs. 29,78,752/- was made on the petitioner by letter
dated 4-12-2001.
50. The bank guarantee furnished by the petitioner in W.P. No. 38158 of
2003 was invoked by the respondents on 4-12-2001 for a sum of Rs. 9,11,250/-
and a sum of Rs. 5,62,500/- furnished to the Director General of Foreign Trade.
The petitioner therefore requested the respondent to waive the interest. Howev-
er, the respondents declined to consider waiver of interest as there was no provi-
sion for such waiver.
51. The 1st respondent has quantified a sum of Rs. 9,97,000/- (4,74,570
+ 5,22,430) as interest from the petitioner under the two licenses and after adjust-
ing the amount of Rs. 14,73,758/- by encashing the Bank Guarantee, the petition-
er has called upon to pay a sum of Rs. 6,48,260/- as the balance interest due from
the petitioner.
52. When the impugned orders were passed, the Customs Notification
No. 46/2013-Cus., dated 26-9-2013 had not been issued. As per the said notifica-
tion, in case of default of export obligation, the amount of interest to be paid by
an importer shall not exceed the amount of duty if such regularisation has been
dealt in terms of public notice of the Government of India, in the Ministry of
Commerce No. 22 (RE-2013)/2009-14, dated 12-8-2013.
53. Text of the aforesaid public notice reads as under :-
PUBLIC NOTICE No. 22(RE-2013)/2009-2014 NEW DELHI, DATED THE
12th August, 2013
Subject : Option to close cases of default in Export Obligation.
In exercise of powers conferred under Paragraph 2.4 the Foreign Trade Pol-
icy, 2009-2014, the Director General of Foreign Trade hereby provides a
procedure to close cases of default in Export Obligation under (a) Duty Ex-
emption Scheme (para 4.28 of the HBP v1 and (b) EPCG Scheme (para 5.14
of HBP v1 RE-2012).
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