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TMI Blog2009 (9) TMI 857X X X X Extracts X X X X X X X X Extracts X X X X ..... nted unit. We also find that provisions of Section 61 clearly exclude the liability to pay interest for a period of 5 years from the date of bonding - appeal allowed - decided in favor of appellant. - C/620/2008 - 1233/2009 - Dated:- 14-9-2009 - Shri M.V. Ravindran and P. Karthikeyan, JJ. Shri Pradyumna G.H., Advocate, for the Appellant. Shri V. Raja Ram, JDR, for the Respondent. ORDER This appeal is directed against OIA No. 93/2008 dated 31-7-2008: The brief facts of the case are as follows: The appellants are a 100% EOU engaged in Business Process Outsourcing operations (BPO) and imported duty free capital goods valued at Rs. 34,80,058/- involving customs duty of Rs. 12,43,037/- and indigenous goods valued at Rs. 41,79 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ject matter of another appeal. It is his submission that in this case, Revenue has sought for the interest from the appellant for the entire period when the capital goods were in the bonded warehouse. He submits that this is incorrect. Division Bench in the case of Stelfast India P. Ltd. v. CC, Bangalore [2006 (195) E.L.T. 86 (Tri-Bang)], has held that interest is not liable to be paid on the customs duty on the warehoused goods under Chapter IX of the Customs Act, 1962. He would submit that this order was challenged by the Revenue before the Hon ble High Court of Karnataka and Hon ble High Court has affirmed the decision of the Tribunal as reported in 2007 (207) E.L.T. 46 (Kar). He would draw our attention to Section 61 of the Customs Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anes, hoists and stackers), office equipments, captive power plants including captive generating sets, spares of captive power plants and captive generating sets, tools, jigs, gauges, fixtures, moulds, dies instruments and accessories, (other than raw materials, components and consumables) authorised to be imported by an export oriented undertaking or an Electronic Hardware Technology (EHTP) unit or a Software Technology Park (STP) Unit and warehoused under Chapter IX of the said Act, at the time of clearance from Customs Bended Warehouses under section 68 of the said Customs Act. Explanation. - For the purposes of this notification, - (i) Electronic Hardware Technology Park (EHTP) unit means a unit established under and in accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to see this provision of law and, therefore, the confirmation of interest is not justified. Furthermore, the plea taken that the Customs Authorities has taken their own time to de-bond the unit from the EOU Scheme despite the Government of India, EOU Section of the Ministry of Industry granting permission to the appellant to withdraw from the EOU scheme on 20-2-1996 and in such a circumstance, interest is not payable in the light of the cited judgments is also a well taken ground. On both grounds, interest is not leviable and hence the impugned order is set aside. The appeal is allowed with consequential relief, if any. 7. It can be seen from the records that on an appeal filed by the revenue, Hon ble High Court of Karnataka has clear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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