The division bench of Madras High Court held that, Circular (No. 31 /2003) allowing Administrative Control over Export Oriented Units is not enforceable and Ultra Vires to the Regulation (3) of the Customs (Fees for Rendering Services by Customs Officers) Regulations, 1998.
The Standing Counsel for the revenue submitted that, the respondent herein is willing to pay the supervision charges on the basis of the Merchant Over Time charges and also exercised the option dated 28.06.2003 to avail the services of the Central Excise Officers on payment of said charge, in terms of the Board’s Circular dated 07.04.2003 and therefore, it is not open to resile from the terms and conditions of the Board’s Circular dated 07.04.2003 and take a contra stand.
While denying the submissions of Standing Counsel, the division bench relied many Tribunal Orders as well as High Court Judgment.
While dismissing the appeal filed by The Commissioner of Central Excise, the division bench comprising of Justice M.Sathyanarayanan and Justice J.NIsha Babu observed that, “The original authority as well as the appellate authority has held that in view of the Board’s Circular dated 07.04.2003, the Export-Oriented Units have to pay MOT charges even for Customs/Central Excise-related works even during office working hours and as such, the respondent had also exercised his option on 28.06.2003 and therefore, the prayer sought for by the respondent herein cannot be granted”.
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