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2018 (3) TMI 205 - AT - Customs100% EOU - eligibility for depreciation on capital goods in the computation of liability to duty upon failure to comply with prescribed export obligation - Held that: - the duty liability on imported, or indigenously procured, capital goods is erased by sheer efflux of time. The appellant has been a functioning export-oriented unit since 1992 and capital goods procured in that year should be eligible for depreciation over the period that the unit has been in existence. As on the date of the impugned order, the appellant has been in existence for over a decade and, by application of the straight-line depreciation approved by the Central Board of Excise & Customs, the value of capital goods would be nil. Consequently, no duty liability would arise. The nexus between the value of the goods imported and the applicable duties is a legacy of time gone by. On the date of initiating proceedings against the appellant, a different regime was in place and that regime relied upon the touchstone of net foreign exchange positive. Considering the value of imports effected by the appellant, that obligation stands fulfilled. Appeal allowed - decided in favor of appellant.
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