Tribunal Rules Interest Demand on EOU Debonding Time-Barred; Aligns Limitation Period with Section 28 of Customs Act.

Debonding of 100% EOU - Demand of interest on raw materials, lying in stock beyond the warehousing period - Period of limitation - 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. Thus, the SCN is time barred. - in absence of any limitation period for demanding interest in respect of Customs duty payable in term of Section 61(3) of Customs Act, in the case of warehoused goods, the limitation period would be the period prescribed in Section 28 of the Act ibid. - AT .....

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