TMI Blog2022 (6) TMI 707X X X X Extracts X X X X X X X X Extracts X X X X ..... by 100% EOU and the same were cleared after warehousing period of three years and in terms of sub-section (2)(i) the assessee was required to clear the goods after expiry of three years. In the present case, the assessee being 100% EOU, imported goods exempted under Notification No. 50/2003-Cus. There is no dispute about the intention of the said goods to be used in the manufacture of final product in the 100% EOU unit of the appellant. Section 61(1) does not provide that goods should be used in the manufacture but it only requires that the goods imported with intention of use in 100% EOU. As regards the intention for use, it is not disputed - Therefore, appellants clearances falls under Section 61(1)(aa), according to which the interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e years of bonding. The case of the department is that appellant is required to pay interest after expiry of 90 days in terms of Section 61 (2)(ii). The contention of the department is that since the appellant have not used the goods imported, it cannot be said that the same was intended for use by 100% EOU. Accordingly, the same is covered under Section 61(1)(b) and in terms of sub-Section 2(ii), the appellant is required to pay interest after expiry of 90 days. Learned Commissioner (Appeals) also upheld the demand of interest, hence the present appeal is filed. 2. Shri Anil Gidwani, learned Counsel appearing on behalf of the appellant submits that the appellant has imported goods under notification which is meant for 100% EOU and the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dertaking, till the expiry of five years (aa) in the case of goods other than capital goods intended for use in any hundred per cent, export-oriented undertaking, till the expiry of three years, and (b) in the case of any other goods, till the expiry of one year, After the date on which the proper officer has made an order under section 60 permitting the deposit of the goods in a warehouse Provided that - (2) Where any warehoused goods, - (i) specified in sub-clause (a) or sub-clause (aa) of sub-section (1) remain in a warehouse beyond the period specified in that sub-section by reason of extension of the aforesaid period or otherwise, interest at such rate as is specified in section 47 shall be payable, on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Therefore, appellants clearances falls under Section 61(1)(aa), according to which the interest provisions provided under sub-Section (2)(i) shall apply, which provides that interest to be charged only after expiry of three years till the date of payment of duty. The appellant have discharged the customs duty along with interest beyond three years till the date of payment. Therefore, as per statutory provisions, as discussed above under Section 61, the demand of interest over and above the interest paid by the appellant is not sustainable. 6. A similar issue has been considered by this Tribunal in the case of Sun Pharmaceuticals Industries Limited (supra) wherein the following order has been passed:- 3 . On consideration of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same view, as is evident from Para 6 of Circular No. 15/2009, dated 12-5-2009, though the officers under CBEC appears to have a different view. Para-6 of the said circular is as follows :- 6. Further, as per the provisions of Section 61(2), interest on warehoused goods is payable when they remain in the warehouse beyond the permitted warehousing period specified in Section 61(1). Such interest is payable on the amount of duty payable at the time of clearance of the goods from the expiry of the said warehousing period (including such extended period), till the date of payment of duty on the warehoused goods. Thus, when a provision has been made for warehousing of imported goods, without payment of interest for a specified period, it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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