Case Law Details
ONGC Petro Additions Limited Vs C.C.-Ahmedabad (CESTAT Ahmedabad)
Introduction: The CESTAT Ahmedabad recently delivered a crucial verdict in the case of ONGC Petro Additions Limited versus C.C.-Ahmedabad. The dispute revolved around the denial of remission of customs duty for imported raw material destroyed in a fire incident at ONGC Petro’s SEZ unit. The impugned order rejected the application, citing reasons related to SEZ Act provisions and alleged negligence by the appellant.
Detailed Analysis:
1. SEZ Act vs. Customs Act: The appellant contended that Section 23 of the Customs Act is applicable despite the SEZ Act’s overriding effect, as the remission sought pertains to customs duty. The analysis emphasizes that customs duty, governed by the Customs Act, should be subject to remission under Section 23.
2. Negligence Allegations: The appellant argued that the fire incident occurred suddenly and beyond their control, as supported by the survey report. The analysis discredits the Commissioner’s claim of negligence, highlighting the thorough survey conducted for insurance purposes, which absolved the appellant of any wrongdoing.
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