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2006 (7) TMI 501 - AT - Customs100% EOU - Import of Capital Goods free of duty - Non-fulfilment of export obligation - main grievance of the appellants is that the benefit of depreciation on capital goods has not been given while calculating the duty in terms of Board’s instructions on the subject - HELD THAT:- Matter remanded to the Original Authority for giving the benefit of depreciation on the Capital Goods in accordance with the relevant Boards’ Instructions and decide the matter. Thus the appeal is allowed by way of remand. 100% EOU - procured Capital Goods by import and also by local purchase free of Customs and Central Excise duty under the EOU Scheme - failure to fulfil the export obligation - HELD THAT:- It is seen that in the present case, the appellants has discharged 76% of the export obligation. Therefore, it cannot be said that they had not put to use the Capital Goods procured free of duty. In any case, it is seen that no de-bonding order has been issued by the competent authorities. In that case, the Capital Goods are still deemed to be under bond. In these circumstances, the duty demand is premature. Therefore, the impugned order is set aside and matter remanded to the original authority to decide the matter after the issue of debonding order by the competent authority. While computing the duty liability, the benefit of depreciation should be given - The appeal is allowed by way of remand.
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