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TMI Blog2018 (4) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... developer requested the specified officer of Essar Special Economic Zone for permission under Rule 12(8) of SEZ Rules, 2006 for sale/clearance of the imported goods in the DTA on payment of applicable Customs duties, since their application for inclusion of jetty area remained pending with the SEZ Authorities. Necessary permission was granted on 27.09.2007 by the specified Officer subject to strict compliance of Provisions of Rule 12(8) and Rule 25 of SEZ Rules, 2006. Consequently, the DTA Unit has filed the bill of entry on 16.10.2007 for procurement of the said steel sheet piles and requested the authorized officer of Essar Special Economic Zone to assess the bill of entry to discharge applicable customs duty under Section 30 of SEZ Act, 2005. The said bill of entry was assessed on 23.10.2007 where under the Customs duty payable was calculated as Rs. 3,20,52,673/- and interest of Rs. 33,19,344/- commencing from the date of import i.e. 13.02.2007 till 23.10.2007 i.e the date of clearance to DTA. The appellant paid the duty but discharged the interest amount under protest and later filed a refund claim on 22.08.2008 for the interest amount. The refund claim was rejected by the Adju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry provisions and not part of the charging provisions. In the absence of any statutory Provision, collection of interest would be without jurisdiction. 5. Further, referring to the Provision of Section 47 of the Customs Act, 1962, the Ld. Advocate has submitted that it cannot be invoked for levy of interest as in the present case, the assessment of goods was not under Section 47 of the Customs Act, but under Section 30 of the SEZ Act,2005. Reiterating his argument, the Ld. Advocate submitted that in absence of a specific Provision for payment of interest and in the present case as the Provisions of SEZ Act and the SEZ Rules do not provide for payment of interest on removal of goods from SEZ Unit to the DTA, therefore, no interest is payable by the appellant. In support the Ld. Advocate referred to the following judgments: * JK Synthetics Ltd. vs Commercial Taxes Officers (1994) 4 Supreme Court Cases 276 * India Carbon Ltd. & Ors vs State of Assam (1997) 6 Supreme Court Cases 479 * Diamond and Gem Dev Corporation vs UOI 2016 (342) ELT 366 (Guj.) * CCE & C Surat-I vs Ukai Pradesh Sahakari Khand Udyog Madli Ltd. 2011 (271) ELT 32 (Guj.) * Commr. Vs Oil & Natural Gas Corpora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present appeal for determination is: whether the appellant is required to discharge interest for the period from 13.02.2007 to 23.10.2007 on the duty free imported goods to SEZ on its clearance to DTA on payment of duty of Rs. 3,20,52,673/- as assessed under section 30 of SEZ Act, 2005. The Department s contention is that on a cumulative reading of the relevant Provisions, namely, Rules 34, 25, 47(4) of SEZ Rules 2006 and Section 30 of SEZ Act, 2005 the imported goods of 597 pieces of Steel Sheet Piles being not used for authorized operations in the SEZ area, therefore, the duty paid on 23.10.2007, be deemed to have been due as on the date of its initial import i.e. 13.02.2007 into the SEZ for authorized operation. Consequently, interest is payable under Section 47 of Customs Act, 1962 for the said period. The argument of the appellant, on the other hand, is that the Provisions of Section 25, 34 relates to the developer of SEZ and not applicable to the appellant. Also, it is their contention that there is no Provision under the SEZ Act or Rules made thereunder directing payment of interest, when the goods were cleared from SEZ to DTA on payment of applicable Customs duty. Further, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orted or procured from Domestic Tariff Area, it may export the goods or sell the same to other Unit or to an Export Oriented Unit or Electronic Hardware Technology Park Unit or Software Technology Park Unit or Bio-technology Park Unit, without payment of duty, or dispose off the same in the Domestic Tariff Area on payment of applicable duties on the basis of an import license submitted by the Domestic Tariff Area buyer, wherever applicable. RULE 47 Sales in Domestic Tariff Area. (1) (2) (3) (4) Valuation and assessment of the goods cleared into Domestic Tariff Area shall be made in accordance with Customs Act and rules made thereunder. Section 30. Domestic clearance by Units. Subject to the conditions specified in the rules made by the Central Government in this behalf:- (a) any goods removed from a Special Economic Zone to the Domestic Tariff Area shall be chargeable to duties of customs including anti-dumping, countervailing and safeguard duties under the Customs Tariff Act, 1975, where applicable, as leviable on such goods when imported; and (b) the rate of duty and tariff valuation, if any, applicable to goods removed from a Special Economic Zone shall be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l assessment; or (c) in the case of deferred payment under the proviso to sub-section (1), from such due date as may be specified by rules made in this behalf, and if he fails to pay the duty within the time so specified, he shall pay interest on the duty not paid or short-paid till the date of its payment, at such rate, not less than ten percent but not exceeding thirty six per cent. Per annum, as may be fixed by the Central Government, by Notification in the Official Gazette.] 12. On a plain reading of the aforesaid Provision , it is clear that in the event, the bill of entry is returned to the importer after assessment by the proper officer, the duty shall be required to be paid and in the event he fails to pay the duty within the specified period then interest would be leviable on the amount of duty for the delayed period. In the present case, it is not in dispute that the bill of entry was filed on 23.10.2007 and after assessment, within five days, i.e. on 24.10.2007, the duty was paid. Thus, there was no delay in discharging the duty after assessment under Section 47 of the Customs Act,1962. The Revenue s attempt to levy interest from the date of initial import by the SE ..... X X X X Extracts X X X X X X X X Extracts X X X X
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