Supervision charges under Chapter X were not recoverable where L-6 and L-4 premises were in the same campus.

Supervision charges were not recoverable where an assessee procured goods under Chapter X procedure and the L-6 premises were within the same campus as the L-4 premises. The Board circular distinguished cases involving separate premises and supported non-recovery in this setting. The fact that departmental supervision, if any, was rendered during normal office hours also negatived any claim for overtime-based charges. On that basis, the article records that the departmental demand for supervision charges failed and the Tribunal treated the matter as covered by the circular.

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Issues: Whether supervision charges were recoverable from an assessee availing Chapter X procedure where the L-6 premises were within the L-4 premises and the supervision was provided during normal office hours.

Analysis: The assessee had been permitted to procure goods without payment of duty under Chapter X procedure pursuant to Notification No. 6/CEX/2000 dated 1-3-2000, and the departmental officers had issued the necessary CT-2 certificates and supervised receipt of goods. The controlling Board circular clarified that supervision charges were payable by L-6 licence holders, but not where the L-6 premises were separate from the L-4 premises; where both premises were in the same campus, the circular supported non-recovery. The Commissioner (Appeals) had also found that the supervision, if any, was rendered within normal office hours, which further negatived any claim for overtime-based supervision charges. The Tribunal found that the matter was squarely covered by the Board circular and the order appealed against was correctly based on that position.

Conclusion: Supervision charges were not recoverable from the assessee.

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