2006 (8) TMI 55

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..... ed De-bonding by the approval of Development Commissioner and such De-bonding was subject to payment of duties of Customs and Central Excise applicable at the time of such De-bonding. The Development Commissioner was to permit such De-bonding as a one time option to de-bond on payment of duty on Capital Goods under the prevailing Export Promotion Capital Goods (EPCG) scheme, subject to the factory units satisfying the eligibility criteria as prescribed by Exim Policy. 2. The Commissioner, pursuant to a Show Cause Notice dated 29-4-2004 found :- (A) 1. The second hand/used capital goods in question were de-   bonded on 4-11-99/5-11-99. 2.       The depreciated value of the capital good .....

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..... 1-1999. 5.       Paragraph 9.39, prohibiting de-bonding of second-hand capital goods, was inserted in the Handbook of Procedure (1997-2002) vide DGFT Public Notice No. 33 (RE)-99)/l997-2002, New Delhi dated 1-10-1999.           The dates and events mentioned above show that the permission for pre-mature de-bonding was granted to the unit after paragraph 9.39 prohibiting de-bonding of second hand machines (capital goods) under EPCG scheme was inserted in the Handbook of Procedures (1997-2002). Moreover, the said licence was issued in respect of new capital goods to be imported whereas the Annexure list attached to the Licence indicates the description of goods as us .....

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..... thority cannot sit in judgments over the licence (EPCG licence) granted in this case for New/used machinery imported & being installed as Capital Goods. There is no transfer of the machinery to any other legal person. Therefore the new machinery will not become second hand & the natures of second hand machinery in will not alter. Since the Annexure to the EPCG licence indicates the description of the goods as installed & in situ in the EOU the benefit of the Licence cannot be denied & DGFT authorities licence as issued cannot be questioned. EPCG benefit cannot be denied. 3.3 Since the BE's filed Ex-Bond were assessed & cleared on EPCG licence, there can be no case or cause to invoke the larger period. The demands are barred by limita .....

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