Acts and Sections Discussed:

1. Customs Act, 1962:
   • Section 18(3): Interest on final/re-assessment orders.
   • Section 28: Recovery of duties not levied/short-levied.
   • Section 28AA: Interest on delayed payment of duty.
2. Supreme Court Precedents:
   • Commissioner of Trade Tax, Lucknow v. Kanhai Ram Thekedar.
   • Sales Tax Officer v. Dwarika Prasad Sheo Karan Dass.

• Factual Matrix: The petitioner (B.V. Jewels) defaulted on paying customs dues confirmed by the CESTAT in 2006. Although partial payments were made following a 2013 Supreme Court order, the interest liability remained unpaid. The petitioner contended against the demand for interest citing procedural lapses and delays in enforcement.
• Legal Issues:
  1. Whether the interest demand under Section 28AA is valid despite being raised years after the initial duty confirmation.
  2. Whether the attachment of the petitioner’s factory premises was lawful.
• Court's Decision:
  • Interest liability under Section 28AA arises automatically upon default.
  • Attachment of the petitioner’s premises was justified due to non-fulfillment of financial liabilities.
  • Dismissed the petition as lacking merit, highlighting procedural delays and lack of substantive grounds.

1. Introduction:

• Overview of parties and procedural history (Paras 1-3).

2. Petitioner's Contentions:

• Discharge of liability under Supreme Court’s 2013 order (Para 5).
• No interest was demanded in the original or appellate orders (Para 7).

3. Respondents’ Defense:

• Interest demanded per Sections 18(3) and 28AA; no additional notice required (Paras 11-12).

4. Factual Background:

• Customs violations (Paras 15-19).
• Supreme Court’s conditional installment order (Para 20).

5. Court’s Observations:

• Interest liability automatic under Section 28AA (Paras 39-43).
• Petitioner's contention of compliance contradicted by evidence (Para 32).

6. Conclusion:

• Petition dismissed; Rule discharged (Para 48).

Ratio Decidendi:

1. Interest is an automatic liability: Sections 18(3) and 28AA of the Customs Act impose statutory interest on delayed payment of dues without requiring specific demand notices.
2. Procedural compliance essential: Delays and procedural lapses by the petitioner disqualified their claim for relief under equitable principles.
3. Doctrine of Finality: Prior rulings by the Supreme Court on related matters bound the petitioner.

Subjects:

Customs, interest liability, statutory obligations, enforcement of dues.

Customs Law, Interest on Delayed Payment, Enforcement of Financial Liabilities, Bombay High Court Judgment.