Demand of Interest under Section 28AA of Customs Act is Statutory & Automatic: Bombay HC

B.V. Jewels Vs Union of India (Bombay High Court) Bombay High Court held that demand of interest under section 28AA of the Customs Act is statutory and operates automatically hence there is no need of any show cause notice or a formal demand for the same. Facts- The petitioner is a partnership firm engaged in the manufacturing and exporting of gold and jewellery studded with diamonds and precious stones. The respondents issued a show cause notice u/s. 28 and 124 of the Customs Act alleging a shortage of stock of diamonds imported after taking into account the exports effected, resulting evasio...