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2024 (6) TMI 788 - HC - CustomsIssues Involved: The judgment involves issues related to exemption from cost recovery charges for a Container Freight Station (CFS) under the Customs Area Regulation, compliance with performance benchmarks for waiver, payment of pending arrears of cost recovery charges, and the validity of interest charges on arrears. Exemption from Cost Recovery Charges: The petitioner, a company operating a CFS, sought exemption from cost recovery charges as per the Customs Area Regulation. The petitioner met the performance benchmarks for waiver and applied for exemption prospectively from 30.06.2010. However, the exemption was recommended on the condition of paying pending arrears of cost recovery charges, leading to disputes. The petitioner cleared the arrears as directed by the court and requested consideration for exemption. The court directed the authorities to compute and inform the petitioner about interest and any other dues for the period 2011-2013, and upon payment, to consider the application for waiver promptly. Dispute Over Arrears and Interest Charges: The petitioner's counsel argued that interest should only apply to the arrears of charge, not tax or duty, and offered to pay interest for the period 2011-2013 after adjusting payments made. The respondents' counsel contended that the petitioner must pay the principal amount along with interest to validate the application for waiver. The court acknowledged that the exemption scheme was still in place and directed the department to calculate and inform the petitioner about interest and other dues for 2011-2013. The petitioner was instructed to pay the calculated amount to proceed with the waiver application. Final Decision: Considering the submissions and the ongoing exemption scheme, the court ruled that the petitioner is eligible for exemption from cost recovery charges upon payment of pending arrears and interest. The department was ordered to compute the interest and other dues for 2011-2013, and upon payment by the petitioner, to promptly consider the applications for waiver and de-notification. The writ petition was finally disposed of with these directions.
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