Vikas Telecom Private Limited Vs Commissioner of Customs (CESTAT Bangalore)
The CESTAT Bangalore considered an appeal by Vikas Telecom Private Limited concerning refund of export duty paid on steel procured for developing a Special Economic Zone (SEZ). The appellant, an SEZ developer approved under Section 2(g) of the Special Economic Zone Act, 2005, was developing Embassy Tech Village, declared as an SEZ. The appellant relied on Section 26 of the SEZ Act, which provides exemption from customs duty on goods imported into or services provided to an SEZ for authorised operations.
Customs Notification No.66/2008-Cus dated 10.04.2008 imposed export duty at 20% on iron/ferrous products. The appellant stated that subsequent departmental instructions required payment of prescribed duty on supplies to SEZs. The Karnataka High Court, in Shyamaraju & Co. (India) Pvt. Ltd., Vikas Telecom P. Ltd and Others Vs. Union of India, held by judgment dated 13.07.2010 that the levy was unconstitutional and that no export duty was payable on supplies to the SEZs. The Department’s appeal was dismissed on 09.02.2011. The Supreme Court subsequently dismissed the civil appeals on 26.08.2015.
The appellant had paid the disputed duty during pendency of the proceedings and subsequently pursued a refund claim. After applications were returned by the SEZ and Customs authorities for filing before the appropriate authority, the appellant filed its refund application before the Additional Commissioner of Customs on 04.03.2016. The claim was rejected, and the Commissioner (Appeals) also rejected the appeal.
