TMI Blog2016 (2) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... ted in a statute or statutory instrument for it to be extended when converting from or exiting from Export Oriented Unit. As long as a logical method of depreciation is adopted, the valuation would be sustainable in law. For ensuring uniformity, circulars of Central Board of Excise & Customs did prescribe rates of depreciation from time to time before the practice of incorporation in notifications was commenced in 2003. Rates of depreciation were prescribed in circular no 27/98-Cus dated 21st April 1998 and amended later by circular no 43/98-Cus dated 26 th June 1998.The impugned order while allowing the appeal of the respondent-assessee had accepted the contention in the application for refund adopting the rates found in the Handbook o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e duty exemptions and concessions being extended through notifications issued under Customs Act, 1962 and Central Excise Act, 1944. Export Oriented Units are entitled to import and procure locally without payment of duty all kinds of capital goods, consumables and raw materials required for manufacture of approved goods. IN the Export Promotion Capital Goods scheme, the licencee is permitted import, as well as indigenous procurement, of capital goods either at nil rate or concessional rate. Under both schemes, export obligations imposed by the Foreign Trade Policy are incorporated as post-importation condition in the corresponding exemption notification issued by Department of Revenue. 3. The EXIM Policy and the relevant notifications al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 516, refund of ₹ 15,20,754/- paid in excess was sought. While the original authority rejected the claim by holding the first computation to be proper and in accordance with the extant circular of Central Board of Excise Customs, the first appellate authority took a contrary position to grant relief to M/s RM Mohite Textiles Ltd. Hence this appeal by Revenue. 6. We observe that Foreign Trade Policy 2002-07 prevailed at the time of conversion while the relevant Revenue notification are 22/2003-CE dated 31st March 2003 and 52/2003-Cus dated 31st March 2003. It is also noted that the first appellate authority agreed with the contention of M/s RM Mohite Textiles Ltd that the depreciation prescribed in notification no.52/2003-Cus dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld continue with the very same capital goods at the original plant, the debonding of the unit takes it out of the ambit of the scheme in a manner that is not dissimilar to that of taking capital goods out of a functioning Export Oriented Unit. We also find that the observation of the Tribunal in re Kumar Housing Corporation Ltd is a statement pulled out of context. 9. Learned Counsel for respondent contends that debonding was acknowledged for the very first time when notification no. 52/2003-Cus was amended by the notification no 40/2004-Cus dated 26th February 2004. Therefore, according to him, the rate of depreciation prescribed in the notification of 2003 would be effective for conversion only from 2004 and that the respondents are g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eciation does not require to be incorporated in a statute or statutory instrument for it to be extended when converting from or exiting from Export Oriented Unit. As long as a logical method of depreciation is adopted, the valuation would be sustainable in law. 12. For ensuring uniformity, circulars of Central Board of Excise Customs did prescribe rates of depreciation from time to time before the practice of incorporation in notifications was commenced in 2003. We find that the principle laid down in paragraph 5.3 of the decision of the Tribunal in re Kumar Housing Corporation Ltd in continuation of the observation supra would squarely apply: .However the CBE C issued circulars right from 1994 onwards allowing depreciation o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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