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Issues: Revenue's appeal against Tribunal's order regarding interest levied on Customs duty exemption claimed by the respondent.
The judgment involves a case where the respondent, a holder of a custom license under the Customs Act, imported duty-free capital goods and raw materials by availing exemption under a specific notification. The respondent, a manufacturer of various products, was permitted to set up a 100% Export Oriented Unit (EOU). The Department of Industrial Development issued a show cause notice to the respondent for not fulfilling conditions after importing goods and claiming exemption. The department demanded duties and interest. The matter went through various stages of adjudication, with the appellate authority remanding it for de novo adjudication, eventually ordering payment of duties without imposing a penalty. The Tribunal's decision was focused on the interest claimed by the Department, which was the only issue questioned by the respondent. The Tribunal allowed the appeal filed by the respondent, leading to the Revenue's appeal before the High Court. The High Court, after hearing the Assistant Solicitor General and examining the material on record, noted that the Tribunal based its decision on a specific notification from 1995, which referred to an earlier notification from 1981. The 1995 notification clarified that no interest could be levied on Customs duty for goods warehoused under a particular chapter of the Act. The Court found that the Tribunal's reliance on this notification was appropriate and that there was no legal error in their decision. The Court concluded that there were no grounds for interference and rejected the appeal without admission. In conclusion, the High Court upheld the Tribunal's decision regarding the interest levied on Customs duty exemption claimed by the respondent, based on the specific notifications and legal provisions cited in the case.
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