2006 (9) TMI 419

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ;Heard both sides. The Revenue is in appeal against the impugned order passed by the Commissioner (Appeals) of Central Excise & Customs, BBSR, who in turn allowed the appeal filed by the respondents herein holding that the interest under Section 61 of the Act on the impugned items on the eve of pre-mature de-bonding is not sustainable. 2.1 M/s. Polar Pharma India Ltd., the respondents herein .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... bonding. Accordingly, the assessee paid Customs duty amounting to Rs. 5,36,016/- and interest of Rs. 1,80,366/- assessed against Ex-bond B/E No. 1/100% EOU/2003, dt. 23-10-03. 2.2 Subsequently, the respondents herein filed a refund claim vide their application dated 26-5-04 for Rs. 1,80,366/- under Section 27(1) of Customs Act, 1962 on account of interest paid by them at the time of de-bondi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ) held that the undertaking furnished by the assessee in B-17 has not been vitiated because of the goods were installed/used in the unit prior to expiry of warehousing period. 4. The main contentions of the Department are that the goods were imported duty free intended for use in 100% EOU under exemption Notification No. 53/97-Cus. dated 3-6-97 (as superceded by Notification No. 52/03 dated .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... parate Export-oriented benefit incorporated in the EXIM Policy prescribing separately the authority who can issue on fulfillment of certain conditions. Therefore, he submitted that Section 61(1)(a) of Customs Act is the proper provision as to five years warehousing benefit is admissible or not. It cannot be decided under B-17 Bond. Apart from this, the ld. Counsel for the respondents relied upon t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ion has not been fulfilled. Hence waiver of interest does not arise. Therefore, I am of the view that the Commissioner (Appeals) erred in observing that refusal of grant of interest as ordered by the original authority is not sustainable. Therefore, the impugned order is set aside and the appeal filed by the Revenue is allowed. (Pronounced in the open Court.)
Case laws, Decisions, Judgements, .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X