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2012 (11) TMI 517 - AT - CustomsDebonding – demand of duty – raw material - Held that:- what can be demanded is the customs duty on the unutilized raw material which are lying in stock, at the rate of duty prevalent at the time of payment of duty on the original value of importation - duty demands have been confirmed in respect of raw materials and consumables consumed and utilised in the manufacture of goods which have been exported during the period from 1997-98 to 2001-02. Such a duty demand is totally and completely unsustainable Debonding – demand of duty – capital goods - Held that:- Appellant has achieved export obligation and value addition during the first five year block period and achieved positive NFE during the second five year period. Thus non-fulfilment of the conditions of notifications under which the goods are obtained duty-free does not arise at all. Consequently, confiscation of goods under Section 111(o) of the Customs Act, 1962 cannot be upheld as also the imposition of penalty under Section 112(a) Customs Act, 1962 - Duty on the capital goods can be demanded only after grant of depreciation on the capital goods at the rate prevalent on the date of expiry of the warehousing licence - duty on the depreciated value of capital goods at the rate of duty prevalent on the date of debonding - matter remanded back to the original adjudicating authority - appeals are allowed by way of remand.
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