Lower Duty for Clandestine Clearance?

By Vijay Kumar

CAN you imagine a higher duty for clearances with permission and lower duty for clandestine clearances? Well, the Law used to stipulate that some time ago - prior to 2001 to be precise. The duty payable by EOUs for DTA clearances allowed by the authorities was the aggregate of customs duties and for other clearances, the duty was normal excise duty. This aberration was corrected in 2001. But for the period prior to 2001, that was the law and it was upheld by the Supreme Court. This should have been an issue closed in 2001 or at least in 2010 when the Supreme Court explained the law.

But last week, the Supreme Court had to again decide the issue. The Supreme Court reiterated its earlier view.

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