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TMI Blog2008 (12) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... ods warehoused prior to the amendment of Customs Act, 1962 are also eligible for waiver of interest accrued on duty, even if the goods have been cleared for home consumption after the date of issue of notification i.e. 1-11-95 – Held that since, no finding has been given by the Commissioner (Appeals) regarding applicability of the Notification and circular – impugned order is set aside and the matter is remanded to the C(A) for de novo decision - C/194/2006-SM - 1594/2008-SM(BR)(PB), - Dated:- 11-12-2008 - Shri Rakesh Kumar, Member (T) Shri S. Sunil, Advocate, for the Appellant. Shri A.K. Rastogi, DR, for the Respondent. [Order]. - The Appellant are a 100% EOU. They were issued a LOP dated 25-8-87 by the Ministry of Industr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), while accepting their duty liability, challenged the Assistant Commissioner's order regarding interest on duty from the date of importation. The CC (Appeals) vide the impugned order-in-appeal dated 21-10-05 modified the Assistant Commissioner's order holding that interest is chargeable w.e.f. 5-10-95 - the date of Ministry of Industry (SIA)'s letter permitting withdrawal from the 100% EOU scheme. 2. Heard both the sides. 2.1 Shri S. Sunil, Advocate, the learned counsel for the Appellant, pleaded that the CC (Appeal) has not taken note of the fact that the Appellant's application to the CBEC for granting waiver of interest is still pending and in such circumstances charging interest is totally unjustified and unwarranted, that whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtension of warehousing period in their case beyond the initial one year has to be automatic and that the 100% EOU must be advised to apply for longer extension and waiver of interest. The Board issued another circular No. 475/42/91-Cus-VII, dated 6-6-91 instructing that keeping in view the nature of manufacturing activities which normally require longer period from five to ten years for fulfilment of export obligation and the element of interest which will be leviable after expiry of initial warehousing period of one year would add additional burden as well as make the goods un economical in the international market, the demands for realization of interest on duty on capital goods warehoused by an EOU, may be issued in time but not enforce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1-3-97 imposed fiscal penalty of Rs. 50,000/- on them under Section 4K of the Import and Export (Control) Act, 1947, read with Section 20(2) of the Foreign Trade (Development and Regulation) Act, 1922 and also debarred the appellant from importing any goods, receiving import licence, customs clearance permit etc. from the date of the order till 31-3-98. 3.3 In the meantime, the appellant also applied to the Ministry of Industry (SIA) and DGFT for debonding. The Ministry of Industries (SIA) gave clearance from debonding on 5-10-95 and thereafter the DGFT permitted debonding on 11-3-97. At the time of debonding, the appellant's duty liability was determined at Rs. 85,432/- on the depreciated value of the capital goods. Since, the Board ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcular No. 31/96-Cus. dated 7-6-96, wherein it was clarified that the goods warehoused prior to the amendment of Customs Act, 1962 are also eligible for waiver of interest accrued on duty, even if the goods have been cleared for home consumption after the date of issue of notification i.e. 1-11-95: 5. Since, in this case no finding has been given by the Commissioner (Appeals) on the plea of the appellant regarding applicability of the Notification No. 67/95-Cus. (N.T.), dated 1-11-95, which as per the Board's Circular No. 31/96-Cus., dated 7-6-96 would be applicable to the goods imported prior to the issue of this Notification, but debonded after 1-11-95, and since the show cause notices demanding interest have been adjudicated without ..... X X X X Extracts X X X X X X X X Extracts X X X X
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