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2023 (11) TMI 916 - AT - CustomsEOU - Destruction or disposal of obsolete imported raw material and components - Direction to destroy or dispose the goods only after payment of duty on the assessable value at the time of import with interest till date of payment of duty. Whether the raw materials/components procured without payment of duty under notification 52/2003-cus dated 31.03.2003 can be permitted to be destroyed without payment of duty when the goods become obsolete and unfit for manufacture? HELD THAT:- As per the Circular dated 10.9.1999, the supplier of such defective/damaged or otherwise unfit for use, goods, does not insist on re-export of such goods, the same may not be re-exported subject to the condition that such goods shall be either destroyed with the permission of the Assistant Commissioner in-charge of the unit or cleared into DTA on payment of full Customs duty - It is an admitted fact that appellant vide letter dated 01.09.2010 sought permission from the Department for destruction of obsolete imported raw material and components. They have also informed that destroyed goods would be sold as scrap and duty discharged on the scrap value of the obsolete raw materials. Thus, the adjudication authority ought to have allowed the request of the appellant for destruction of such goods either within the unit or destroyed outside the unit when it is not possible to destroy the same within the unit without insisting for payment of custom duty especially when respondent have allowed destruction of obsolete goods subject to payment of scrap value earlier. In the instant case, there is no dispute that the appellant had vide letter dated 29.11.2010 had requested the Department for permission to destroy the goods that were obsolete and unfit for use and they had also agreed to pay duty on the scrap value of the goods. The Hon’ble High Court in the case of COMMISSIONER OF C. EX., DELHI-V VERSUS PURE RICE LTD. [2007 (4) TMI 270 - HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH] relying upon the Notification 60/99 dated 10.9.99 has category been held that in case the goods supplied are unfit for use in the supplier does not insist on re-export when such goods are required either to be distracted with the permission of the resident Commissioner of Customs Central Excise in charge of the unit or cleared into DTA on payment of full customs duty the circular appear to have been issued on account of difficulties being faced by the export oriented units like the petitioner in regard to replacement of goods imported or exported which have been found to be damaged or defective or otherwise unfit for use. Therefore, there arises no substantial question of law warranting admission of the appeal. There are no merit in the impugned orders. Appeals are allowed.
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