2024 (9) TMI 1501 - AT - Customs

Levy of Customs duty on imported goods destroyed in fire in SEZ units - procurement of duty free goods indigenously by availing exemption in terms of various provisions goods under the SEZ Act 2005 and SEZ Rules 2006 - the subject goods for authorized operations not used thereby violating the said provisions - Seeking remission of customs duty - HELD THAT - This Tribunal has taken a consistent view that in case of any destruction due to natural cause in the SEZ the SEZ unit is entitled for the remission of duty in terms of Section 23 of Customs Act 1962. Therefore as of now there is no dispute on the legal issue that the SEZ unit is eligible for the remission of the customs duty in case the goods is destroyed in the SEZ unit. However the appellant have not opted for the remission of duty by filing appropriate application before the competent authority. Therefore for this limited purpose the matter needs to be remanded to the Adjudicating Authority. Liberty is granted to the appellant to file an appropriate application in terms of Section 23 of the Customs Act 1962 and rules made thereunder if any along with all the relevant documents for seeking remission of duty which shall be disposed of by the competent authority in accordance with law. The impugned order is set aside - Appeal is allowed by way of remand to the adjudicating authority for passing a fresh order after observance of principles of natural justice.

Summary

The Appellate Tribunal CESTAT Ahmedabad heard a case where duty-free goods were destroyed in fire at a manufacturing unit in a Special Economic Zone (SEZ). The tribunal ruled that the SEZ unit is eligible for remission of customs duty in such cases but the appellant failed to apply for it. The matter was remanded to the Adjudicating Authority for the appellant to file the necessary application for remission of duty. The impugned order was set aside, and the appeal was allowed for remand to the adjudicating authority. (Judgement dated 24.09.2024)