https://www.taxtmi.com/caselaws?id=791977 Supplies to an SEZ unit for authorised operations fall under the special SEZ regime, which overrides the ordinary customs charging provisions to that extent; where the department does not allege use outside authorised operations, customs duty cannot be levied and interest cannot survive an unsustainable duty demand. Penalty under Section 114 of the Customs Act, 1962 also fails when the underlying duty demand is not sustainable, and penalty under Section 114AA cannot be imposed where the show cause notice did not specifically charge that ground. The demand and penalties were held unsustainable. en-us Tue, 19 May 2026 00:00:00 +0530 Thu, 21 May 2026 15:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791977 Supplies to an SEZ unit for authorised operations fall under the special SEZ regime, which overrides the ordinary customs charging provisions to that extent; where the department does not allege use outside authorised operations, customs duty cannot be levied and interest cannot survive an unsustainable duty demand. Penalty under Section 114 of the Customs Act, 1962 also fails when the underlying duty demand is not sustainable, and penalty under Section 114AA cannot be imposed where the show cause notice did not specifically charge that ground. The demand and penalties were held unsustainable. Case-Laws Customs Tue, 19 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791977