Quarkcity India (Pvt.) Ltd. Vs Union of India and others (Punjab And Haryana High Court)
Punjab and Haryana High Court held that in terms of Rule 25 of the SEZ Rules, SEZ developer not utilizing the goods or services on which exemptions, drawbacks, cess and concession have been availed needs to refund the concessions so availed.
Facts- Vide the present petition, the petitioner has contested against the action of the respondents in levy of duty of Rs.47 lacs upon the petitioner company inconsonance with the minutes of meeting held on 22.5.2015 and further for quashing of the order dated 18.8.2015, whereby the petitioner has been asked to deposit the custom duty amounting to Rs.6,59,700/- for the purpose of permission to dispose of unutilized goods under Special Economic Zone Rules 2006, being illegal, arbitrary, unjust, against the settled principles of law.
Conclusion- Held that there is merit in the argument raised by learned counsel for respondents that in the present case, what is involved are goods which have become defective or damaged due to their non-utilisation by Unit or Developer within the stipulated period, thus, such goods would fall within the ambit of Rule 25 of SEZ Rules. It is clearly provided in Rule 25 that in the event of Entrepreneur or Developer not utilizing the goods or services on which exemptions, drawbacks, cess and concession have been availed for authorized operations, it shall refund the amount equal thereto without prejudice to any other action under relevant provisions of Statutes as are mentioned therein. Keeping in view the facts and circumstances as above, we do not find any ground whatsoever which calls for interference in this matter in exercise of jurisdiction under Article 226 of Constitution of India. Writ petition is, accordingly, dismissed.
