2023-VIL-1235-CESTAT-DEL-CU
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CUSTOMS CESTAT Cases

Customs - SEZ unit – Appellant (SEZ unit) procured certain input goods from DTA unit - Since certain input goods remained unutilised, the appellant supplied back the said goods to the DTA – Demand of duty on goods returned from SEZ to DTA - whether removal of goods from SEZ to DTA (goods initially procured from DTA) are chargeable to customs duty in terms of section 30 of SEZ Act, 2005 read with rule 47 of SEZ Rules, 2006 – HELD - The provisions of section 30 of the SEZ Act permits DTA clearances by a SEZ unit on certain conditions and that is goods to be removed from SEZ to DTA would be chargeable to duties of customs etc. It is a settled principle of law that once the provisions of an enactment are simple and there is no ambiguity there is no scope for interpretation - the substantive provisions of section 30 specifically providing for clearance of goods from SEZ to DTA on payment of customs and other duties, the submission sought to be made by the appellant that rule 48(3) carved out a deeming fiction of non-leviability of BCD and SWS on the imported goods is not correct on the simple principle that the rules cannot go contrary to the substantive provisions of the Act - the appropriate interpretation of rule 48(3) would be that clearance of goods by SEZ units back to DTA shall be treated as normal re-import but that would not make the SEZ unit as importer. The basic fallacy in the interpretation placed by the appellant was that they completely ignored the provisions of rule 47 which provides for “Sales in Domestic Tariff Area” on payment of customs duty under section 30. Thus rule 48(3) has to be read together with rule 47 and not in isolation - The appellant has also raised contention regrading denial of benefit of exemption Notification No. 45/2017-Cus., which provides different levels / measures of exemption benefits to the re-imported goods depending upon which export benefits - the matter is remanded on the applicability of the exemption notification and whether the appellant is entitle to any benefit in terms thereof – the appeal is partly dismissed and partly remanded
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