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2014 (1) TMI 427 - AT - CustomsDuty demand - Import of capital goods and consumables under Notification No. 126/94-Cus., dated 3-6-1994 - Procurement of similar items domestically under Notification No. 136/94-C.E., dated 10-11-1994 - Debonding of gods - Held that:- where the goods were permitted to be taken outside by the Development Commissioner on debonding, the duty has to be charged on the depreciated value inasmuch as the goods have been imported under Notification No. 126/94. In case of non-fulfilment of export obligation and in case where debonding were permitted by the Development Commissioner, the duty liability has to be computed on the depreciated value as is clear from the above Notification - Notification Nos. 52/2003 and 22/2003 have no application whatso-ever (in respect of goods imported/procured indigenously prior to the date of issue of these notifications) and (duty liability will have to be determined) under the provisions of Notifications under which the goods were imported/procured indigenously and wherever the units were allowed to be debonded, depreciation should be granted in terms of Board’s Circular No. 43/98-Cus., dated 26-6-1998. Appellant is liable to pay duty only on the depreciated value of the capital goods - both the Development Commissioner and the Joint DGFT have permitted the appellant to clear the capital goods under EPCG scheme. Therefore, the rate of duty that can be charged on the goods being debonded would be the rate applicable to the capital goods under EPCG scheme at the time of debonding - no duty liability would accrue in regard to raw materials, consumables etc. imported/indigenously procured which have been consumed for the production of cut flowers, as the goods have been used for the intended purpose - Matter remanded back for duty computation - Decided in favour of assessee.
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