Extended period of limitation unsustainable; allowable deductions for prompt payment discounts, pro rata recovery, freight and VAT led to demand being...
Duty on supply of M.S. scrap to an SEZ unit was held unsustainable because the statutory SEZ scheme displaced the customs duty levy; the duty demand was therefore set aside. As the underlying duty demand failed, the related interest also could not survive, and penalty under section 114, being consequential to the alleged duty liability, was likewise vacated. Penalty under section 114AA was also set aside because the show cause notice did not propose that penalty, so the appellant had no notice to meet that charge.
Duty on supply of M.S. scrap to an SEZ unit was held unsustainable because the statutory SEZ scheme displaced the customs duty levy; the duty demand was therefore set aside. As the underlying duty demand failed, the related interest also could not survive, and penalty under section 114, being consequential to the alleged duty liability, was likewise vacated. Penalty under section 114AA was also set aside because the show cause notice did not propose that penalty, so the appellant had no notice to meet that charge.
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