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M/s. Century Yarn Versus C.C.E. & S.T. Indore

2015 (11) TMI 1430 - CESTAT NEW DELHI

100% EOU - duty payable on debonding - assessee had capitalized certain spare parts - revenue took the view that by this process, the value of the capital goods has increased and accordingly at the time of debonding, duty of ₹ 50,85,814/- should have been paid on this amount after 10% depreciation. - Interest u/s 28AB - Held that:- Even though spare parts have been capitalized, in our view once the spare parts have been used for replacement of the old and worn out machinery parts, the same .....

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e, even if the same have been capitalized. - at the time of debonding, the Jurisdictional Inspector, Central Excise, after checking their records and stock, had determined the appellants duty liability and had communicated the same under his letter dated 10/04/04 and at that time also he had checked the account of receipt and consumption of the imported as well as indigenously procured spare parts - appellant cannot be accused of suppressing the relevant information from the Department and, the .....

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ri Amar Dave, Shri Chahat Chawla & Shri Karan Chopra, Advocates For the Respondent : Shri Amresh Jain & Ms. Suchitra Sharma, DR ORDER Per Ashok Jindal: The facts leading to filing of this appeal are, in brief, as under. 1.1 The appellant are a division of M/s Century Textiles and Industries Ltd. engaged in manufacture of denim fabrics chargeable to Central Excise duty. They were earlier a 100% EOU vide LOP Dated 23.10.1990 and had commenced commercial production thereafter. They had impo .....

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and inputs to be paid at the time of debonding and the total excise duty and custom duty so assessed was ₹ 1,08,83,399/-. This duty was paid and on 16/04/04. The Commissioner issued a no due certificate which was passed on to the Development Commissioner. On 20/04/04 the Development Commissioner issued a final debonding order and, as such, the appellants unit became a DTA unit. 1.2 The appellant during 1996-97 to 2001-02 period had used and capitalized certain spare parts. These spares im .....

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notice on 19.02.2009 the Jurisdictional Commissioner of Customs vide order-in-original dated 18.12.2009 confirmed the customs duty demand of ₹ 50,85,814/- alongwith interest thereon under Section 28AB of Customs Act, 1962 and beside this, imposed penalty of equal amount on the appellant under Section 114A of Customs Act, 1962. Against this order of the Commissioner, this appeal has been filed. 2. Heard both the sides. 3. Shri Aman Dave, Shri Chahat Chawla and Shri Karander Dev Chopra, Adv .....

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hat in view of the above submissions, the impugned order is not correct. 4. Shri Amresh Jain, the learned Departmental Representative, defended the impugned order by reiterating the findings of the Commissioner and emphasized that when the appellant have capitalized the spare parts, in question, there is double enrichment, as they have availed depreciation on the value of the spare parts and at the same time, they have also enjoyed the Customs duty exemption, that once the spare parts, in questi .....

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