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TMI Blog2023 (2) TMI 901X X X X Extracts X X X X X X X X Extracts X X X X ..... or De-Bonding of the unit into DTA vide letter dt. 29.11.2006 and paid appropriate duties on the capital goods, imported raw materials, finished stock, indigenous capital goods lying as stock. It was noticed that certain raw materials were lying in stock beyond the warehousing period of three years as prescribed under Section 61 of the Customs Act, 1962. The appellant paid duty on raw materials lying in stock to the tune of Rs. 40,89,232/- along with duties on other items. The department was of the view that the duty paid on raw materials warehoused beyond the period of three years was liable to interest under Section 61 (2) (i) of Customs Act, 1962 at the rate of 15% per annum as per Notification No. 28/2002- Cus. (NT) dated 13.05.2002. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f three years. 6. The appellant vide letter dated 23.05.2007 requested for waiver of interest. The Jurisdictional Range officer vide letter dated 28.08.2008 informed that the Chief Commissioner has not acceded to the request for waiver of interest. The appellant requested copy of the order vide their letter dated 29.09.2008. In the meantime, the SCN was issued on 13.10.2008. The appellant sent representation to CBIC dated 30.01.2009 on the issue of demand of interest, and also alleging that the SCN is time barred. The appellant did not receive any reply. 7. The Ld. Counsel put forward mainly two contentions to assail the demand of interest. Firstly, that in terms of para 4 of CBEC Circular No. 10/2006 dated 14.10.2006 it is directed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rejection and therefore is within the time limit. She asserted that the appellant is liable to pay the interest on the duty paid on stock of raw materials ware housed beyond the period of 3 years. The Ld. A.R requested that the appeal may be dismissed. 9. Heard Both sides. 10. The issue to be decided is whether the appellant is liable to pay interest on the duty paid on the stock of raw material warehoused beyond the period of three years or whether the SCN is time barred. 11. The Board Circular dated 14.02.2006 relied by the Ld. Counsel reads an under: "2. A need was felt in the Board to combine all these instructions into one consolidated circular on the aforesaid matter to ensure uniformity to consider the request for waiver of int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quent clearance against valid advance licenses/import-Export Pass Book Scheme or any similar scheme (xi) Goods imported in bulk by canalizing agencies/public sector trading or services and warehouse for subsequent release for export production (xii) Imports under EPCG Scheme (xiii) Import of Capital Goods by Public Sector Undertakings. [Emphasis supplied] 12. It has to be noted that the said circular intends to give some solace to a 100% EOU by waiving the liability of interest. The Chief Commissioner has however rejected this request of the appellant. 13. Be that as it may, the SCN has been issued under Section 28 of the Customs Act,1962. The said section is noticed as under : "SECTION 28 Notice for payment of duties, interest e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompute the demand would therefore be the date of debonding ie., 31.03.2007. The Ld. AR has submitted that as the appellant had filed a request for waiver, and also an undertaking; the date of rejection of the request for waiver has to be considered as the relevant date. The said contention cannot be accepted for the reason that Section 28 does not provide for extension of time based on an undertaking filed by assessee. The section does not speak of any extension of time based on a request for waiver. Further the request for waiver is filed as per the Board Circular. Circulars, though binding on the Department, is not so on the Tribunal. We have no hesitation to hold that the SCN is time barred. 15. The Tribunal in the case of Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X
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