Tag: Customs duty

GST ArticleSupreme Court

Customs dues do not impact the rights of secured creditors

byCA Bimal Jain

The Hon’ble Supreme Court in IDBI v. Superintendent of Central Excise and Customs and Others set aside the order passed by the division bench of the Hon’ble Andhra Pradesh High Court and held that the position in law was that the debt ‘due and payable’, when falls within the four corners of clause (a) to Section 530(1) of the Companies Act, would be treated as preferential payment, but it would not override and be given preference over the payments of overriding preferential creditors covered under Section 529A of the Companies Act.

GST ArticlePre-GST

No liability to pay interest in a revenue-neutral situation

byCA Bimal Jain

The CESTAT, Kolkata in M/s Jai Balaji Industries Limited v. Commissioner of Central Excise, Bolpur set aside the order confirming interest on differential duty and held that where the differential duty paid by the assessee is available as CENVAT credit to the Assessee’s sister concern then it is a revenue-neutral situation. Thus, as duty was not actually payable, the payment of interest does not arise in the case of revenue neutral situation.