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Issues: Recovery of duty and levy of interest on imported goods kept in Customs Bonded Warehouse under sections 58 and 65, extension of warehousing period, duty demand confirmation, interest calculation, depreciation for determining duty value, applicability of Notification No. 67/95-Cus.
In this judgment, the core issue revolved around the recovery of duty and levy of interest on computers and peripherals imported and stored in a Customs Bonded Warehouse under sections 58 and 65. The goods were initially imported duty-free under Notification No. 140/91-Cus., and the bond period was for five years. The appellants failed to request an extension of the bond period, believing it was valid till a later date. However, Preventive Officers calculated a duty demand of Rs. 29,94,413/- as the bond period expired. The Commissioner confirmed the duty demand and interest under the Customs Act, but no orders on confiscation or penalty were issued, leading to the appeal. The appellants argued for the re-determination of duty based on depreciation rates prescribed in Circular No. 29/03-Cus., as they believed the current calculation did not align with the Board's instructions. Additionally, they highlighted the benefit under Notification No. 67/95-Cus., which exempted goods imported by 100% EOU in software technology parks from interest on Customs duty, a factor not considered in the case. The Tribunal, after considering the arguments, set aside the duty demand and interest, remitting the matter back to the adjudicating authority for re-determination based on the depreciation circular and interest notification. As a result, the appeal was allowed for remand in the specified terms, leaving other raised issues for consideration by the re-adjudicating authority.
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