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2014 (8) TMI 45 - CESTAT NEW DELHI100% EOU - debonding - levy of duty on depreciated value - Whether depreciation is admissible on the value of capital goods imported but not used fully for the purpose of manufacture so as to discharge export obligation - Notification No.95/93-Cus dated 2.3.1993 - Held that:- Revenue's argument to deny depreciation does not appear to be reasonable for the reason that depreciation is admissible once there was export obligation discharged even partly irrespective of quantum of export made in absence of any clause in the notification for disallowance against partly discharge of export obligation. Therefore there shall be allowance of depreciation on the capital goods imported to calculate the value thereof for the purpose of recovery of duty foregone. Respondent shall be entitled to depreciation. Qauntum of depreciation - Held that:- Circular No.14/2004-Cus dated 13.2.2004 says that in respect of clearance of capital goods by EOU/EHTP/STP units, depreciation at the rate of 20% per annum of the original value of computer and computer peripherals items and 10% depreciation per annum in case of other capital goods shall be admissible. Such mandate of circular provides basis to hold that rate of depreciation to be allowed shall be at prescribed percentage per annum of original value of the respective and type of capital goods imported duty free. This calls for set aside of the impugned order and matter remanded to the adjudicating authority to calculate the quantum of depreciation admissible keeping in view the mandate of circular issued by Board - Decided partly in favour of Revenue.
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