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]

You need to contact the consultant.

AI Summary

Customs Duty on Warehoused Goods in Shipbuilding: Applicability Under Sections 58 & 65 of Customs Act 1962 Challenged A query was raised regarding the applicability of customs duty, interest, and penalties on warehoused goods under Sections 58 and 65 of the Customs Act, 1962, specifically for the shipbuilding industry availing exemption under Notification No. 21/2002. The goods were utilized for manufacturing but remained under Section 58. The customs department confirmed a demand, despite the exemption. The query questioned the justification of the demand, referencing a Supreme Court decision in the Pratibha Processor case and a time-barring plea. The response advised consulting a professional for further guidance.