TaxTMI 
TaxTMI 
2026 (3) TMI 767
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....f stainless-steel products viz. billets, blooms, Bars & Rods etc., and for that purpose had imported subject goods viz., 'waste and scrap of stainless steel, Stainless Steel billets and Ferro alloys' and used the same for manufacture of stainless-steel products. These imported goods were supplied through Free Trade Warehousing Zone (FTWZ) M/s Arshiya Supply Chain Management Limited, a unit situated within FTWZ. Whenever the imported goods are sold in the Domestic Tariff Area (DTA) and such sale not being exempt from payment of sales tax/VAT, exemption from payment of the whole Special Additional Duty of Customs (SAD) leviable under sub- section (5) of Section 3 of the Customs Tariff Act, 1975 in terms of Notification No. 45/2005-Customs dated 16.05.2005 was available to the importers. Upon receipt of the imported goods at the appellants factory, the said goods undergo further processing for manufacture of stainless steel products and thereafter such final products are sold to dealers/customers in DTA upon payment of applicable VAT/sales tax. On the above basis, the appellants had submitted an undertaking with the Specified Officer of FTWZ declaring that appropriate VAT/CST shall be....
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....an industry wide issue and there were different interpretation adopted by different wings of government. Thus the entire demand raised in the SCN dated 16.06.2015, demanding duty for the disputed period April, 2012 to March, 2013 is barred by limitation of time; and consequently, confiscation of impugned goods and imposition of final penalty are also liable to be set-aside. 3.3 In support of their stand, learned Advocate had cited the following decisions of the judicial forums: (i) CRI Limited Vs. Commissioner of Customs - Final Order No. 75617 dated 18.11.2020 upheld by Hon'ble Supreme Court - 2024 (387) E.L.T. 514 (S.C.) (ii) Commissioner of Central Excise Vs. Serum Institute of India - 2019 (370) E.L.T. 407 (Tri. - Mum.) (iii) Lloyd Electric & Engineering Vs. Commissioner of Central Excise & S. Tax - 2018 (361) E.L.T. 1043 (Tri. - All.) (iv) Peekay Re-Rolling Mills Vs. Asst. Commissioner - (2007) 4 SCC 30 (v) Dixon Technologies India Private Limited Vs. Commissioner, Customs & Central Excise, Noida-II - Final Order No. 7095270953/2024 dated 11.12.2024. (vi) National Products Vs. Commissioner of Customs & CGST, Noida - Fina....
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....o-ordinate Bench of the Tribunal had examined the disputed issue both on merits and on time bar aspect. The observations made by the Tribunal are extracted and given as under:- "6. The crux of the issue involved in this case is whether the benefit of Notification No.45/2005 as amended granting exemption from "SAD" is available in respect of "Blanks" cleared from the "SEZ Unit" of the Appellant by way of stock transfers to its "DTA Unit". The scope of the said Notification is reproduced below. "In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all goods cleared from a special economic zone and brought to any other place in India in accordance with the provisions of the Foreign Trade Policy 2004-2009, from the whole of the additional duty of customs leviable thereon under sub section (5) of section 3 of the Customs Tariff Act, 1975 (51 of 1975). Provided that no such exemption shall be applicable if such goods, when sold in domestic tariff area, are exempted by the State Government from payment of sale....
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....lly supports the case of the Appellant. 9. Coming to the issue of limitation, we find that the bills of entry were filed and assessed by customs officers in charge of the SEZ; the issue involves interpretation of a notification; therefore, we find that no suppression and wilful misstatement etc with intent to evade payment of duty can be alleged and extended period cannot be invoked. Coming to the normal period, learned counsel for the appellants submits that although the normal period of limitation was enhanced from 1 year to 2 years with effect from 14 May 2016 the Notice in the instant case, SCN as issued only thereafter on 3 October 2016 covering a period April 2014 to December 2014; the amendment was not a retrospective one; demands which had already become barred by limitation could not get revived by the amendment. We find that Section 28 of the Customs Act, 1962, which provides for recovery of duties not levied or not paid or short paid or erroneously refunded, was amended by Finance Act, 2016 (28 of 2016) w.e.f. 14-5-2016. It provides for demanding duty within 2 years in cases not involving collusion, misstatement etc. we find that the counsel is attempting to equ....
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.... duty demands invoking the extended period of time. 9. However, on close examination of the facts of the case and documents placed below, we find that there were correspondences exchanged between the Ministry of Commerce & Industry, SEZ Section and the Ministry of Finance. In one of such communication in the form of an Order dated 11.10.2013, the Development Commissioner, SEEPZ SEZ vide his Order No. SEEPZ SEZ/51/MISC/74/Cus/1013-14 had specifically ordered that the benefit of Notification No.45/2005-Customs dated 16.05.2005 should not be denied and such instructions should be followed strictly and any unjustified deviation would seriously viewed and disciplinary action would be taken against erring officials who do not implement the same. Further, the issue of exemption from levy of SAD under Notification No.45/2005 dated 16.03.2005 was taken up in the meeting of the Unit Approval Committee held on 16.05.2012 at Noida Special Economic Zone and as recorded in the Minutes of the meeting, it was decided to furnish a certificate from the chartered accountant for compliance with the condition that Sales Tax/VAT is paid against the goods cleared and sold, within three months after cl....