TMI Blog2019 (10) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... Vs. Union of India, [ 2015 (11) TMI 1466 - GUJARAT HIGH COURT ], this Court is constrained to hold that since no duty was leviable upon the goods while entering the Special Economic Zone, the same when being removed as scrap are not chargeable to any customs duty as it consisted of scrap machine parts. The machine parts which were scrap on the date of their removal, even when new were exempt from customs duty under Section 26(1)(a) of the Special Economic Zone Act, 2005 as they were taken into the Special Economic Zone (imported) to carry on the authorized operations of the Company (in liquidation). The amount realised as customs duty by respondent no. 2 from the auction purchaser M/s Shree Ganesh Trading Company, was therefore wholly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed fixtures, furniture, cable PVC wire, false ceiling, Air Conditioner ducting, extra iron gates on which customs duty was being demanded by the respondent prior to removing these goods out of the Special Economic Zone hereinafter referred to as SEZ and into the Domestic Tariff Area. The objection that has been filed to this application by Shri S.K. Mishra on behalf of the Development Commissioner, Noida Special Economic Zone, states that duty has been charged on M.S. Scrap. This duty was chargeable in view of Section 12 of the Customs Act read with Section 30 of the Special Economic Zone Act, 2005 and in accordance with Schedule 1 Chapter 172, heading 7204, of the Customs Tariff Act, 1975. In this regard, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tary, Ministry of Finance). In this case, a notification no. 25/2010-Customs dated 27.02.2010 imposing customs duty at the rate of ₹ 16% advalorem on electrical energy removed from Special Economic Zone to Domestic Tariff Area and non-processing areas of the zone was under challenge. The dispute arose because the petitioner Company was generating, transmitting and selling electrical energy generated from its plant situated in Mundra Port and Special Economic Zone. Some of the electricity generated was liable to be transferred from the Special Economic Zone to the Domestic Tariff Area and on its transfer that customs duty was sought to be charged. The Division Bench of the Gujarat High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks and concessions to every developer and entrepreneur such as exemption from payment of any customs duty, excise duty etc. Section 30 pertains to domestic clearances by a SEZ unit and reads as under :- 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 antidumping, countervailing and safeguard duties under the Customs Tariff Act, 1975 (51 of 1975), where applicable, as leviable on such goods when imported; and (b) the rate of duty and tariff valuation, if any, applicable to goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ery Developer and the entrepreneur shall be entitled to the following exemptions, drawbacks and concessions, namely:- a. exemption from any duty of customs, under the Customs Act, 1962 (52 of 1962) or the Customs Tariff Act, 1975 (51 of 1975) or any other law for the time being in force, on goods imported into, or services provided in, a Special Economic Zone or a Unit, to carry on the authorised operations by the Developer or entrepreneur; b. exemption from any duty of customs, under the Customs Act, 1962 (52 of 1962) or the Customs Tariff Act, 1975 (51 of 1975) or any other law for the time being in force, on goods exported from, or services provided, from a Special Economic Zone or from a Unit, to any pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The Central Government may prescribe, the manner in which, and, the terms and conditions subject to which, the exemptions, concessions, draw back or other benefits shall be granted to the Developer or entrepreneur under sub-section (1). 30. 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 antidumping, countervailing and safeguard duties under the Customs Tariff Act, 1975 (51 of 1975), where applicable, as leviable on such goods when imported; and b. the rate of duty and tariff valuation, if any, applica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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