2006 (9) TMI 419

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....or the Respondent. [Order]. -  Heard both sides. The Revenue is in appeal against the impugned order passed by the Commissioner (Appeals) of Central Excise & Customs, BBSR, who in turn allowed the appeal filed by the respondents herein holding that the interest under Section 61 of the Act on the impugned items on the eve of pre-mature de-bonding is not sustainable. 2.1 M/s. Pola....

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....exit from the 100% EOU Scheme by way of de-bonding. Accordingly, the assessee paid Customs duty amounting to Rs. 5,36,016/- and interest of Rs. 1,80,366/- assessed against Ex-bond B/E No. 1/100% EOU/2003, dt. 23-10-03. 2.2 Subsequently, the respondents herein filed a refund claim vide their application dated 26-5-04 for Rs. 1,80,366/- under Section 27(1) of Customs Act, 1962 on account of ....

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....od of five year. Further, the Commissioner (Appeals) held that the undertaking furnished by the assessee in B-17 has not been vitiated because of the goods were installed/used in the unit prior to expiry of warehousing period. 4. The main contentions of the Department are that the goods were imported duty free intended for use in 100% EOU under exemption Notification No. 53/97-Cus. dated 3....

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....ort & Export Policy. But in case of 100% EOU it is a separate Export-oriented benefit incorporated in the EXIM Policy prescribing separately the authority who can issue on fulfillment of certain conditions. Therefore, he submitted that Section 61(1)(a) of Customs Act is the proper provision as to five years warehousing benefit is admissible or not. It cannot be decided under B-17 Bond. Apart from ....