Customs Officers cannot seize Goods in SEZ Area: CESTAT [Read Order]

special-economic-zone - SEZ

The Customs, Excise and Service Tax Appellate Tribunal has held that the customs officers have no jurisdiction to seize the goods in the Special Economic Zone ( SEZ ).

The appellants, Shri Imran Ahmed, are located in S.E.Z. area and having a license to import the goods which are to be re-exported after processing. The appellant imported certain brass scrap under the said license.

The DRI came to know that said brass scrap imported by the appellant is not scrap, but is a prime material and therefore, seized the said goods. The adjudication took place wherein the goods were held liable for confiscation. Consequently, the redemption fine and penalties were imposed. Differential duty was also demanded along with interest. Personal penalty on the co-noticees was also imposed.

The bench noted that the appellants are located in Special Economic Zone and having a license to import the impugned goods.

Relying on the decision of the Tribunal in the case of Morgan Tectronics Ltd. v. Commissioner of Customs, New Delhi, the bench held that “the Customs officers have no jurisdiction on the appellant to seize the goods in S.E.Z. area therefore seizure of the goods in question is set aside. Consequently, no demand can be confirmed against the appellants. Therefore, the confiscation of the impugned goods is also set aside.”

To Read the full text of the Order CLICK HERE