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2018 (3) TMI 1443 - HC - Customs100% EOU - debonding obligation - not achieving value addition - Whether the order of confiscation of the capital goods and imposition of penalty was fully justified in the facts and circumstances of the case? - Whether the Tribunal erred in law in setting aside the order of confiscation of the capital goods and imposition of the penalty against the respondent? - Held that: - It always remained open for the authority to refuse debonding and at the same time initiate action for payment of duty which the respondent was exempted at the time of import of capital goods for the EOU Unit. The resultant effect of allowing de-bonding and holding that value addition has been achieved by the respondent is that there was no willful attempt to evade duty by importing duty free goods for EOU without ever intending to operate and manufacture the goods in the EOU Unit. Once the element of intention to evade duty is absent and as a matter of fact there is no such allegation in the SCN, demand of duty, confiscation of capital goods and imposition of penalty ought not to have been fastened on the respondent. It is not a laconic order or perfunctory in that sense of the term which has not dealt with the facts and law applicable. Confiscation and penalty set aside - decided against Revenue.
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