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2021 (7) TMI 261 - HC - CustomsSeeking no Dues Certificate and exit certificates - Seeking exit from SEZ scheme - vacation of premises - Refund of customs duty and interest - the amount was paid under protest - HELD THAT - The Petitioner has shown willingness to pay all the dues as assessed by the revenue department for exiting the SEZ scheme vacating units No. 501 and 601. The department as well has filed an affidavit-inreply on 02.07.2021 on behalf of the respondents referring to that application dated 24.03.2021 has been filed by the petitioner for permission to clear e-waste, scrap and the balance capital goods on payment of applicable duty under rule 74(5) SEZ rules, 2006. The same has been processed and necessary permission to file bill of entry had been given to them and the petitioner has filed the bills of entry for the clearance and applicable duties would be levied on the basis of the Customs Tariff Act. It has been referred to that the applicable duty as on 30.06.2021 has been worked out to be approximately ₹ 91,00,000/-. It has further been referred to that request of the petitioner is being processed under rule 74 of the SEZ rules, 2006. The respondents would carry out necessary process for the No Dues Certificate and exit certificates referred to above vacating units No. 501 and 601 as early as possible preferably within a week and pass appropriate orders on fulfillment of the conditions - Petition disposed off.
Issues:
1. Relief sought for No Dues Certificate, refund of customs duty, and setting aside Committee Report and show cause notice. 2. Permission for transfer of ownership of assets in SEZ units. 3. Allegations of violation of SEZ scheme and rules during transfer of assets. 4. Urgency in exiting SEZ scheme due to financial burden and inconvenience caused. Analysis: Issue 1: Relief sought for No Dues Certificate, refund of customs duty, and setting aside Committee Report and show cause notice The petitioner sought various reliefs, including a No Dues Certificate, refund of customs duty, and setting aside a Committee Report and a show cause notice. The petitioner moved the petition seeking these reliefs, along with allowing an application for refund of customs duty and interest deposited under protest. The High Court disposed of the petition, directing the respondents to carry out the necessary process for issuing the No Dues Certificate and exit certificates, while the petitioner agreed not to press for relief regarding the show cause notice. Issue 2: Permission for transfer of ownership of assets in SEZ units The petitioner had set up units in a Special Economic Zone (SEZ) for providing IT services. Subsequently, the petitioner sought to discontinue operations at one unit and transfer ownership of assets. The specified officer granted permission for the transfer of non-IT assets, and a No Dues Certificate was issued. However, issues arose when the petitioner sought to exit the SEZ scheme from other units, as the developer did not cooperate, leading to an enquiry alleging violations during the asset transfer. Issue 3: Allegations of violation of SEZ scheme and rules during transfer of assets An enquiry was initiated against the petitioner and the developer regarding the transfer of non-IT assets of a unit, alleging violations of SEZ scheme and rules. The petitioner challenged the show cause notice and sought relief. The respondents opposed the reliefs in the writ petition, leading to a detailed examination of the circumstances surrounding the asset transfers and the compliance with SEZ regulations. Issue 4: Urgency in exiting SEZ scheme due to financial burden and inconvenience caused The petitioner expressed urgency in exiting the SEZ scheme due to financial burdens, incurring significant monthly rental expenses. The management decided to pay duty on the depreciated value of assets to exit the scheme. The High Court acknowledged the petitioner's urgency and directed the respondents to expedite the process for issuing necessary certificates to facilitate the petitioner's exit from the SEZ scheme, thereby alleviating the financial strain and inconvenience caused.
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