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2009 (9) TMI 351 - AT - Customs100% EOU, De-bonding- The appellants a 100% EOU engaged in business process outsourcing operation and had procured duty free capital goods and indigenous goods without payment of applicable customs duty and central excise duty. On the foreign buyer of their services defaulting payment for the exports, the EOU opted to exit the scheme. The capital goods procured under the EOU scheme were de-bonded under Bill of Entry dated 27-11-2007 and assessed to applicable customs duty. The impugned goods were assessed to duty on their value and at the rate at the time of procurement without allowing applicable depreciation in value and applying the correct rate of duty. After clearance of the impugned goods, they claimed refund of the excess duty of Rs. 15,01,762/- paid by them on account of denial of depreciation and adoption of wrong rate of duty by the authorities. The original authority rejected their claim. The Commissioner (Appeals) sustained the order of the original authority. Held that- we find that the lower authorities wrongly assessed the impugned capital goods on their de-bonding at the value and rate of duty in force at the time of their procurement instead of assessing duty with reference to the depreciated value and the rate of duty in force at the time of filing of bill of entry for ex-bond clearance of the capital goods. The appellants are entitled to refund of the excess duty paid when the liability is computed in terms of the EOU Notifications in force at the time of filing of bill of entry for ex-bond clearance of impugned capital goods. In the light of the decision of CC&CE, Vadodara v. Solitaire Machine Tools P. Ltd. he matter is remanded for recomputation of the duty liability on the capital goods in the light of our above observations. The appellants shall be entitled to consequential relief, if any, on such recomputation of liability.
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