Appeal challenging customs exemption decision dismissed under Customs Act Section 61; Apex Court's jurisdiction affirmed.

The High Court dismissed the appeal challenging the Tribunal's decision to grant exemption under Notification No. 132/2004-Cus, citing Section 61 of the Customs Act and a previous ruling in Stelfast India P. Ltd. v. CC, Bangalore. The Court held that the question of entitlement to exemption and liability to pay tax fell under the purview of the Apex Court, making the appeal under Section 130A not maintainable. The revenue was granted liberty to seek further recourse from the Apex Court.

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Issues involved:
Challenge to Tribunal's order granting exemption under Notification No. 132/2004-Cus.

Analysis:
The High Court dealt with an appeal challenging the Tribunal's decision to set aside orders passed by the Assessing Authority and the Appellate Authority, granting the benefit of exemption under Notification No. 132/2004-Cus. The Tribunal based its decision on the exemption of interest accrued on customs duty payable by an export-oriented unit, as per the notification. The Tribunal's interpretation was supported by Section 61 of the Customs Act, which excluded the liability to pay interest for a specific period. The Tribunal's decision was consistent with a previous ruling in the case of Stelfast India P. Ltd. v. CC, Bangalore. The High Court noted that the question at hand was whether the assessee was entitled to the exemption and thus liable to pay tax under the Act. This question was deemed to fall within the purview of "determination of the rate of duty," a matter reserved for the Apex Court under Section 130E of the Act. Consequently, the appeal under Section 130A was deemed not maintainable, and the appeal was rejected, with the revenue being granted the liberty to approach the Apex Court for further recourse.

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