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2024 (3) TMI 295 - AT - CustomsDemand duty - imported capital goods, raw materials and consumables - EOU Exemption Notifications No.13/81-Cus. and No.53/97-Cus.- Non-fulfilment of export obligations - reasons beyond the control - pre-condition for issuing a No Due Certificate in order to debond and exit from EOU scheme - interest and penalty - demand of Special Additional Duty - HELD THAT:- It is the argument of the appellant that though the raw materials were imported by them, the finished goods could not be exported due to technology failure. It is submitted that the goods at the time of import were intended to be used in finished products which were intended for export and therefore the demand of duty on raw materials cannot be sustained. We are afraid that the said argument is not tenable. The appellant having not fulfilled the export obligation and not used the raw materials for manufacture of finished products for export, the exemption of the notification is not available. Demand of Special Additional Duty - We remand this issue to the original authority who is directed to verify the date of imports made by the appellant and in case, such goods have been imported prior to 1.6.1998, the demand of Special Additional Duty cannot be sustained and will be set aside by the original authority. The appellant is not liable to pay Special Additional Duty for the imports which are made prior to 1.6.1998. Demand of interest - It can be seen that although the Section 28AB was omitted with effect from 8.4.2011, the same has been substituted by Section 28AA. Wherever there is duty liability, the assessee is liable to pay duty along with interest. Mere quoting of a wrong section cannot be a ground to set aside the demand of interest. We do not find any merit in the contention of the appellant with regard to demand of interest. Thus, the impugned order is modified to the extent of setting aside demand of SAD prior to 1.6.1998 after the verification by the original authority. The impugned order is sustained in all other respects. The appeal is appeal is partly allowed with consequential relief, if any, in the above manner.
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