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2016 (2) TMI 360 - AT - Central ExciseRefund claim - higher rates of depreciation allowed - conversion from or exiting from Export Oriented Unit - Held that:- The dispute is one of valuation i.e., the extent to which the original value should be reduced in acknowledgement of the use to which capital goods have been put for export of goods. The goods are not transferred to another entity and thus there is no transaction value. The residuary method of valuation cannot but take into account the time element in relation to goods that do not get integrated into the final product. Therefore, depreciation does not require to be incorporated in a statute or statutory instrument for it to be extended when converting from or exiting from Export Oriented Unit. As long as a logical method of depreciation is adopted, the valuation would be sustainable in law. For ensuring uniformity, circulars of Central Board of Excise & Customs did prescribe rates of depreciation from time to time before the practice of incorporation in notifications was commenced in 2003. Rates of depreciation were prescribed in circular no 27/98-Cus dated 21st April 1998 and amended later by circular no 43/98-Cus dated 26 th June 1998.The impugned order while allowing the appeal of the respondent-assessee had accepted the contention in the application for refund adopting the rates found in the Handbook of Procedures of the relevant Foreign trade Policy. We find from above that the Central Board of Excise & Customs had also aligned its prescriptions accordingly in every circular relating to debonding. We, therefore, find no reason to interfere with the decision in the impugned order to allow the refund claimed by M/s RM Mohite Textiles Ltd - Decided in favour of assessee.
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