Case Law Details
Saraswati Knitwear Pvt Ltd Vs Commissioner of Customs (CESTAT Chandigarh)
Introduction: The case of Saraswati Knitwear Pvt Ltd vs. Commissioner of Customs (CESTAT Chandigarh) revolves around the entitlement to interest on excess duty paid during the clearance of yarn. The dispute centers on whether the appellant, Saraswati Knitwear Pvt Ltd, is eligible for interest on the refund of excess duty paid. This article delves into the detailed analysis of the case and the decision reached by CESTAT Chandigarh.
Detailed Analysis:
1. Background: The appellant, Saraswati Knitwear Pvt Ltd, filed five Bills of Entry on June 9, 2011, for the clearance of 100% PCT Polyester Spun NE 30/1 Yarn Raw White on Cones falling under CTH 55094190. The declared value appeared lower, leading to provisional assessments at a higher rate of USD 2.60 per Kg. The appellant paid the assessed duty via various challans on November 29 and 30, 2011.
2. Appeal Against Excess Duty: Dissatisfied with the provisional assessment, the appellant appealed to the Commissioner (Appeals) against the excess duty charged. The Commissioner (Appeals) directed the assessing officer to finalize the assessment and emphasized that the question of refund would only arise after adjusting the provisionally assessed duty, as per Section 18(2)(a) of the Customs Act, 1962.
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