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2021 (10) TMI 303 - AT - Customs100% EOU Scheme - detention of certain imported and indigenous goods which were not included in the list of capital goods - appellant s case was referred to the National Company Law Tribunal, Chennai in terms of Section 31(1) of the Insolvency and Bankruptcy Code, 2016 for consideration and approval of a Resolution Plan - HELD THAT - The order of the National Company Law Tribunal, Chennai in the matter of M/s. Subburaj Spinning Mills Pvt. Ltd. dated 12.03.2019 2019 (5) TMI 480 - NATIONAL COMPANY LAW TRIBUNAL, SINGLE BENCH, CHENNAI is placed, where the National Company Law Tribunal has held that the Resolution Plan is approved and thereafter concluded that the same shall become effective from the date of passing of the order. As per the order, from the plan approval date, all proceedings, claims, disputes and interests in connection with the Corporate Debtor (appellant herein) shall stand withdrawn, satisfied and discharged - miscellaneous application has been filed by the Authorized Signatory of the appellant for having the appeal disposed of by closing the demands, as abated. The appeal is dismissed as abated.
Issues:
1. Exit from 100% EOU Scheme and subsequent detention of goods. 2. Denial of no objection certificate under EPCG scheme. 3. Confirmation of duty demand, penalties, and imposition of interest. 4. Approval of Resolution Plan by National Company Law Tribunal. 5. Request for disposal of appeal due to financial difficulty. Analysis: 1. The appellants were involved in the manufacture of Cotton Yarn under the 100% EOU Scheme. They opted to exit the scheme, which was approved by the Development Commissioner. However, certain goods were detained by the Department during a visit to the unit, leading to a dispute regarding the de-bonding process. 2. The appellant applied for a no objection certificate to avail the option of paying duty under the EPCG scheme after exiting the EOU scheme. However, the Assistant Commissioner denied the request, stating that full rates of Customs Duty and Central Excise Duty must be paid post-exit from the EOU scheme. 3. A Show Cause Notice was issued, resulting in the confirmation of duty demand under relevant sections of the Customs Act and Central Excise Act, along with the imposition of penalties and interest by the Original Authority. The appellant subsequently faced financial difficulties and filed for insolvency, leading to the approval of a Resolution Plan by the National Company Law Tribunal. 4. The National Company Law Tribunal's order approved the Resolution Plan, which had implications on the proceedings related to the appellant's case. Consequently, the appeal was dismissed as abated based on the approval of the Resolution Plan and the subsequent financial circumstances faced by the appellant. 5. The authorized signatory of the appellant filed a miscellaneous application requesting the disposal of the appeal due to the approved Resolution Plan and financial difficulties faced by the appellant. The Tribunal considered the Resolution Plan's approval date as the point from which all proceedings and claims related to the appellant stood withdrawn, satisfied, and discharged. In conclusion, the judgment addressed issues related to the appellant's exit from the EOU scheme, denial of benefits under the EPCG scheme, duty demand confirmation, penalties, approval of the Resolution Plan by the National Company Law Tribunal, and the subsequent dismissal of the appeal due to financial difficulties and the Resolution Plan's approval.
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