Piramal Enterprises Limited Vs Commissioner of GST & Central Excise (CESTAT Chennai)
In a recent ruling, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Chennai has allowed Piramal Enterprises Limited to claim remission of customs duty on imported raw materials that were destroyed in a fire accident at its 100% Export Oriented Unit (EOU) in 2010. The Tribunal’s decision, pronounced on June 6, 2025, underscores that the fulfillment of conditions stipulated in customs exemption notifications is not applicable when imported goods are destroyed by unforeseen circumstances.
Piramal Enterprises, engaged in the manufacture of organic compounds, had imported Ammonium Persulphate under Bills of Entry dated January 18, 2010, and June 21, 2010. The company was operating as an EOU and availing benefits under Customs Notification No. 52/2003-Cus. and Central Excise Notification No. 22/2003-C.Ex., both dated March 31, 2003, for duty-free procurement of raw materials and capital goods.
Tragedy struck on July 9, 2010, when a fire accident at the EOU destroyed the imported Ammonium Persulphate. Following the incident, Piramal Enterprises sought remission of the customs duty paid on these imports. While the customs duty had been reimbursed by their insurer, the company had paid Anti-Dumping Duty (ADD) under protest and subsequently sought its refund.
