Appellant liable for duty rate at debonding, exempt from interest under Notification No. 132/2004-Cus (NT).

The Tribunal held that the appellant is liable to pay duty at the rate prevailing at the time of debonding for both imported and indigenously procured capital goods. It was determined that no interest is payable by the appellant based on the exemption provided in Notification No. 132/2004-Cus (NT). The final order directs the Revenue to calculate the duty accordingly, with payment required within one month, resulting in the disposal of the appeal.

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Issues Involved:
1. Whether the appellant is liable to pay duty from the date of debonding of their unit at the rate of duty prevailing on such date or at the rate of duty prevailing at the time of import.
2. Whether the appellant is liable to pay interest for the intervening period.

Detailed Analysis:

Issue No. 1: Duty Liability Date and Rate
Arguments and Legal Provisions:
- The appellant contended that the duty should be payable at the rate prevailing on the date of debonding, as per Notification No. 52/2003-Cus dated 31.03.2003 and Notification No. 22/2003-CE dated 31.03.2003.
- The respondent argued that the appellant should pay duty from the date of import, in accordance with Clause 3(d)(I) of Notification No. 52/2003-Cus.

Judgment:
- The Tribunal examined Notification No. 52/2003-Cus and Notification No. 22/2003-CE, along with Section 15 of the Customs Act, 1962.
- It was concluded that, as per Section 15(1)(b) of the Customs Act, the duty is payable at the time when goods are actually removed from the warehouse.
- The Tribunal held that the appellant is liable to pay duty at the rate prevailing at the time of debonding, as this aligns with Clause 8(3A)/8(4A) of the notification.
- For imported raw materials, the duty should be calculated at the rate prevailing on the date of debonding.
- For indigenously procured capital goods, the duty should also be calculated at the rate prevailing on the date of debonding.

Issue No. 2: Interest Liability
Arguments and Legal Provisions:
- The appellant argued that no interest is payable as per Notification No. 132/2004-Cus (NT) dated 25.11.2004.
- The respondent maintained that interest is correctly demanded as per the terms of the notification.

Judgment:
- The Tribunal referred to the precedent set in Business Process Technologies India Pvt Ltd., which held that an export-oriented unit is not liable to pay interest for the period during which the capital goods were warehoused.
- Notification No. 132/2004-Cus (NT) exempts interest accrued on customs duties payable on capital goods warehoused under Chapter IX of the Customs Act.
- The Tribunal concluded that the appellant is not liable to pay interest.

Final Order:
1. For imported capital goods, the appellant is liable to pay duty at the rate prevailing on the date of debonding.
2. For indigenously procured capital goods, the appellant is liable to pay duty at the rate prevailing on the date of debonding.
3. No interest is payable by the appellant.

The Revenue is directed to calculate the duty at the rate prevailing on the date of debonding. Any amount payable by the appellant should be paid within one month. The appeal is disposed of in these terms.

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