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2019 (1) TMI 1188 - AT - Customs100% EOU - warehousing of goods - completion of warehousing period - failure to fulfill export obligation - N/N. 13/81-Cus dated 9th February 1981 read with N/N. 53/97-Cus dated 3rd June 1997 - Held that:- The export oriented unit scheme has undergone changes over a period of time and, more significantly, during the tenor of the ‘letter of permission’ of the appellant. The amending notifications issued under Customs Act, 1962 and Central Excise Act, 1944 superceded, and substituted, the existing notifications. Hence, the condition subject to which the goods were imported were not the same for the respective years of evaluation for compliance to determine the continuance of the privilege of duty exemption on capital goods and recovery of duties. We hold that the duty liability, if any, should be with reference to N/N. 52/2003-Cus. In the present dispute, the proceedings appear to have originated with completion of the period of warehousing which should be applicable only if warehoused goods were never put to use and, on completion of the warehousing period, the duty liability would be computed on value as assessed originally without benefit of depreciation. In the present circumstances, owing to utilization, depreciation is not deniable. The depreciation over the entire tenor would result in ‘nil’ value for the purpose of assessment. Accordingly, the finding on the duty liability of the capital goods is not correct in law. The demand of duty and imposition of penalty is without the authority, and support, of law - appeal allowed - decided in favor of appellant.
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