IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO. 1185 OF 2010 Union of India. ... Petitioner. V/s. M/s.Rajat Pharmachem Ltd. and others. ... Respondents. R.V.Desai, senior counsel with R.B.Pardeshi for the petitioner. Prakash Shah i/b. PDS Legal for respondent Nos.1 to 3. Dilipkumar Sharma, Authorised Signatory of respondent No.1 present in person. CORAM : V.C.DAGA AND S.J.KATHAWALLA, JJ. DATED : 6th July 2010. P.C. : Perused petition. 2. Leave to delete Settlement Commission- respondent No.4 from the array of parties. Amendment to be carried out during the course of the day. 3. Heard learned counsel for the petitioner- Revenue and learned counsel for the respondent Nos.1 to 3. 4. This petition is directed against the order dated 26th November, 2009 to the extent it grants relief from payment of interest and penalty in favour of the respondent- assessee. Relevant clause in the impugned order to the extent it grants relief from payment of interest to the respondent reads as under: “INTEREST: The interest amount is settled at Rs. 6,91,633/- (RE- Rs.6,10,169/- & RPL- Rs. 81,464/-). This amount has to be appropriated from the above deposits, no interest is due as regards SCN dated 29.02.2009 as in our opinion no imports has been made by the applicants utilizing the DEPB. Consequently as held by Hon’ble High Court in Jupiter Exports, only importer would be liable and not the DEPB holder.” 5. Mr.Desai, learned senior counsel made serious grievance that the relief relating to the interest could not have been granted by the Settlement Commission in favour of the respondent- assessee. He urged that the impugned order to this extent is perverse and liable to be quashed and set aside. 6. On being noticed, respondent Nos.1 to 3 appeared and filed affidavit dated 6th July, 2010 accepting the liability to pay interest to cut-short the litigation. They expressed their willingness to pay interest amounting to Rs.11,42,814/- and authorised the petitioner- revenue to appropriate the said amount of Rs.11,42,814/- from and out of excess amount deposited by them with the Revenue during investigation. 7. In the above view of the matter, grievance made by the petitioner- Revenue to the extent of interest remission does not survive. In the result, the Revenue is permitted to appropriate the amount of Rs.11,42,814/- from and out of the excess amount deposited by the respondents with them. Needless to mention that surplus amount is to be refunded to the respondent- assessee by the Revenue within a reasonable time. 8. So far as penalty is concerned, we do not propose to interfere with the impugned order since the discretion is exercised by the Tribunal in accordance with law. The view taken is a reasonable and possible view. 9. Writ petition is, thus, disposed of in terms of this order with no order as to costs. (S.J.KATHAWALLA, J.) (V.C.DAGA J.)