Duty - time barred

[Guest]

Units working under Sec.58 & 65 of Customs Act, 1962 (Shipbuilding Industry) Availing end use based Cus.Noti. 21/2002 Cust. Warehoused goods, Application for extension of W/P filed belatedly, which is pending with the Chief Commis. warehoused goods already issued/utilized under bond manufacturing activity but the resultant goods is yet under the area of Section 58 of CA. No Customs Duty is payable in terms of Noti.No.21/2002 Cust. Department has raised & Confirmed demand of Customs Duty, interest, penalty. My query: Demand of Customs duty & interestis justified when no duty payable in terms of exemption noti supra. rerer of Apex Court decision in case of Pratibha Processor accepted by the CBEC. Demand issued after Six months, time barring plea applicable for warehose goods. Please provide CITATION of APEX Court and CESTAT (WZB)support the case.

[Surender Gupta]

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AI Summary

End use exemption: Department demand of customs duty and interest challenged as inconsistent with notification and time-barred. Units under Sections 58 and 65 claim that warehoused goods issued or utilised under bond for manufacturing remain within the Section 58 area and are exempt from customs duty under the Exemption Notification; nevertheless the department has issued and confirmed demands for customs duty, interest and penalty, which the claimant challenges as inconsistent with the notification and as time barred, requesting authoritative citations.