Fulfilment of Conditions of Customs Notification Not Applicable When goods imported were destroyed in fire: CESTAT Allows Customs Duty Redemption to Piramal Enterprises [Read Order]
The second condition is that the goods imported are either cleared as such into DTA or used in the manufacture of any goods that are cleared into the DTA.
![Fulfilment of Conditions of Customs Notification Not Applicable When goods imported were destroyed in fire: CESTAT Allows Customs Duty Redemption to Piramal Enterprises [Read Order]](https://images.taxscan.in/h-upload/2025/06/13/2043551-customs-notification-cestat-taxscan.webp "Fulfilment of Conditions of Customs Notification Not Applicable When goods imported were destroyed in fire: CESTAT Allows Customs Duty Redemption to Piramal Enterprises [Read Order]")
In a recent case, the Chennai bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) allowed the customs duty redemption to Piramal Enterprises as the fulfilment of Conditions of Customs Notification not applicable when goods imported were destroyed in fire. M/s.Piramal Enterprises Limited, the appellant is a 100 % EOU engaged in the manufacture of organic...
In a recent case, the Chennai bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) allowed the customs duty redemption to Piramal Enterprises as the fulfilment of Conditions of Customs Notification not applicable when goods imported were destroyed in fire.
M/s.Piramal Enterprises Limited, the appellant is a 100 % EOU engaged in the manufacture of organic compounds. They were availing the benefits of Notification No.52/2003-Cus. dated 31.03.2003 and Notification No.22/2003-C.Ex dated 31.03.2003 for procurement of raw materials and capital goods.
The Ammonium Persulphate imported by the Appellant vide two Bills of Entry dated 18.01.2010 and 21.06.2010 was destroyed in a fire accident that occurred in the Appellant’s Export Oriented Unit (EOU) on 09.07.2010. The Appellant thus sought remission of the Customs Duty paid on these imports. The Appellant paid Anti Dumping Duty (ADD) under protest and sought refund thereof. As the Customs Duty paid had been reimbursed by the Appellant’s insurer, the claim for refund was restricted to the ADD.
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By the Order-in-Original, this claim for refund was rejected and also ordered for payment of interest amount of Rs.85,740/- on the delayed payment of ADD as well as imposed penalty of Rs.10000/- under Section 117 of the Customs Act, 1962 read with Section 72 of the Act. On appeal, the First Appellate Authority vide OIA No. 78/2014 (M-I) dated 13.10.2014 upheld the demand of interest; however set aside the penalty.
A two member bench of P. Dinesha,Member (Judicial) and M. Ajit Kumar, Member (Technical) has observed that the Notification No.96/2007 CUS dated 29.08.2007, which imposes the levy of anti-dumping duty on the goods does not make any mention that it is specifically made applicable to EOU/SEZ. The second condition is that the goods imported are either cleared as such into DTA or used in the manufacture of any goods that are cleared into the DTA. The goods having been destroyed in fire, there is no occasion of the goods cleared as such into DTA or used in the manufacture of finished products for clearance into DTA.
The department has relied upon Notification No.5/1994 CUS dated 18.11.1994. The said notification also states that only if the goods are cleared as such into DTA or used for manufacture of finished products and are cleared into DTA, the exemption of the notification would become ineligible.
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The goods imported were destroyed in fire and therefore, there is no requirement to look into the fulfilment of the conditions of Notification No.52/2003 dated 31.03.2003. The court held that the appellant is eligible for remission of duty.
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