https://www.taxtmi.com/caselaws?id=205668 Goods admitted into a special economic zone are treated as outside the customs territory for customs purposes, and the SEZ framework overrides inconsistent Customs Act provisions. Rule 8 of the SEZ Rules, 2003 permits duty demand only where goods are used for unauthorised operations or where there is failure to account for them. Here, the raw materials were destroyed in an accidental fire, with no finding of misuse, diversion, or mala fide removal. The shortage was explained by the fire incident, so the loss did not attract Rule 8 or justify duty demand under the Customs Act. The customs demand was therefore unsustainable. en-us Thu, 17 Feb 2011 00:00:00 +0530 Fri, 16 Sep 2011 11:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=205668 Goods admitted into a special economic zone are treated as outside the customs territory for customs purposes, and the SEZ framework overrides inconsistent Customs Act provisions. Rule 8 of the SEZ Rules, 2003 permits duty demand only where goods are used for unauthorised operations or where there is failure to account for them. Here, the raw materials were destroyed in an accidental fire, with no finding of misuse, diversion, or mala fide removal. The shortage was explained by the fire incident, so the loss did not attract Rule 8 or justify duty demand under the Customs Act. The customs demand was therefore unsustainable. Case-Laws Customs Thu, 17 Feb 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=205668