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2016 (8) TMI 139 - CESTAT MUMBAI

2016 (8) TMI 139 - CESTAT MUMBAI - TMI - Refund of interest paid - Additional Customs Duty (CVD) and interest paid under protest for ex-bonding of their imported capital goods, warehoused in their Customs Private Bonded Warehouse. - he subject refund claim were filed on the ground that when the goods were imported and in-bonded, they were not having EPCG Scheme licence and by the time the EPCG licence allowing full duty exemption to the said in-bonded goods was issued, the initial warehousing pe .....

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oided the payment of Customs duty till the clearance of the goods, therefore the interest chargeable to the warehouse goods after expiry of one year is inevitable. Therefore the interest paid by the appellant under any circumstances is not refundable. - Decided against the assessee. - Appeal No. C/414/2005 - A/88879/16/CB - Dated:- 21-7-2016 - Shri Ramesh Nair, Member (Judicial) And Shri Raju, Member (Technical) Shri Nikhil Rungta, Advocate for Appellant Shri M.K. Sarangi, Joint Commissioner (A. .....

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e filed on the ground that when the goods were imported and in-bonded, they were not having EPCG Scheme licence and by the time the EPCG licence allowing full duty exemption to the said in-bonded goods was issued, the initial warehousing period under Section 61 of Customs Act, 1962, was expired and they could not avail the full exemption under EPCG license as the ex-bond clearance was held up for want of extension of warehousing period by the proper authority. Further when the warehousing period .....

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ow cause notice to the appellant and against it, the appellant filed the Writ Petition NO. 6221/2000, in the Mumbai High Court. The Mumbai High Court vide its order dated 24.11.2000, rejected the said Writ Petition, thereafter the adjudicating authority rejected all refund claims. Being aggrieved by the said order the appellant preferred an appeal before the Commissioner (Appeals), with a prayer that no interest was chargeable from the appellants for the period from the expiry of the initial war .....

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cence and warehousing period, it was expired on 6.9.1996. The appellant had made a request for extension of warehousing licence on 10.8.1996 which was not allowed. It is only on 14.6.1999, the Chief Commissioner has extended the licence upto 31.12.1999, therefore the interest during the intervening period i.e. from one year of expiry of the warehousing period till the date of clearance of the goods under EPCG licence, interest should not be chargeable as the delay is on the part of the departmen .....

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s free to clear the goods under EPCG licence within the validity period of warehousing i.e. upto 6.9.1996 but the appellant has not chosen to clear the goods under EPCG thereafter the appellant has requested for extension of warehousing on 10.8.1996 for the period of six months upto 5.3.1997. The requests of extension were rejected and the warehousing licence has been cancelled. The appellant obtained a fresh EPCG licence on 19.5.1998 thereafter the Chief Commissioner, on the direction of the Tr .....

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erest. In the peculiar facts of this case, even though the licensing period was expired nothing prevented the appellant to pay the duty and clear the goods, if they are really very serious to avoid the payment of interest. It is also the fact that the appellant avoided the payment of Customs duty till the clearance of the goods, therefore the interest chargeable to the warehouse goods after expiry of one year is inevitable. Therefore the interest paid by the appellant under any circumstances is .....

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oods their request to allow the goods to store (ware house) in open space, was considered by the Commissioner of Customs Pune, The Adjudicating Authority also has held that when the initial bond periods in respect of the consignments warehoused during October 1995, February 1996 and April 1996, was about to expire the appellant applied for extension of the same and therefore they wanted to avail benefit of EPCG scheme as per which duty on the consignment was leviable at Nil rate. The Adjudicatin .....

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eld that the appellant after importing the goods were not in a position to avail benefit of Nil duty allowable as per EPCG licence issued to them and also during the course of the initial warehousing period as well as extension of warehousing period sought by them till May 98 due to their inability to comply with the conditions of EPCG licence. The Adjudicating Authority also held that they have even not presented the Ex-bond bill of entry claiming Nil, rate of duty even during alleged inaction .....

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the warehouse was presented when 10% CVD was correctly leviable as on date of presenting the Bill of Entries for home consumption, the payment of interest is inevitable. The Adjudicating Authority while rejecting the refund claim has also taken a plea that the Writ Petition No. 6221/2000, filed by the appellant, was rejected by the Mumbai High Court. In the grounds of appeal the appellants have contended that no interest was payable for the period from the expiry If the initial bond period of on .....

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