Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Home Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles News Highlights
Extracts
Home List
← Previous Next →

M/s Flower and Tissue India Ltd. Versus CCE, Alwar

2016 (9) TMI 1226 - CESTAT NEW DELHI

Demand of customs duty on capital goods imported - imposition of penalty - 100% EOU - tissue culture plants - capital goods originally imported duty-free for setting up of the unit. On account of failure to carry on the business, the factory had to be shut down and approach made to Development Commissioner in February 1997 for de-bonding of the unit - whether the appellant is entitled to depreciation on the capital goods on which he is required to pay customs duty now? - Held that: - The CBE .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed value provided that the said unit has been allowed by the Development Commissioner to clear such goods in DTA. - the unit commenced its production in the year 1994. The appellant has approached the Development Commissioner for de-bonding of the unit as early as 4th of February 1997. The adjudication order passed by the Commissioner originally, demanding customs duty on capital goods was passed in the year 1999. This order was received by the appellant only in the year 2011. As per the dir .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ppellant in calculating the duty payable on the capital goods. - Requirement to pay customs duty - goods auctioned by department and assessee not in possession of the goods - Held that: - The appellant's unit was registered as 100% EOU. The unit was started in 1994 and was in existence till 2011, i.e. till de-bonding of the unit. The customs duty as computed originally by the Commissioner was discharged by the appellant in 2011 and thereafter the capital goods were auctioned by the governmen .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

iness circumstances, a lenient view taken and the penalty imposed is waived. - Appeal disposed off - decided partly in favor of appellant. - Customs Appeal Non 51188 of 2016 - Final Order No. 53207/2016 - Dated:- 24-8-2016 - Mrs. Archana Wadhwa, Member (Judicial) and Shri V. Padmanabhan, Member (Technical) Shri Arun Goyal, Advocate - for the appellant. Dr. Shri S.K. Sheoran, Authorized Representative (DR) - for the Respondent. ORDER The Present appeal is filed against the order dated 15/03/2 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

03/06/1997. On account of failure to carry on their business, their factory had to be shut down and they approached Development Commissioner in February 1997 for de-bonding of the unit. They further approached the Assistant Commissioner for working out and payment of the customs duties. In the 1st round of litigation, Commissioner passed the order dated 02/12/1999 in which the customs duty was demanded on the capital goods originally imported duty-free for setting up of the unit. These proceedin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

has failed to fulfil their export obligation as required under the 100% EOU scheme and hence demanded customs duty amounting to about ₹ 40 Lacs leviable on capital goods imported duty free. Since the appellant had already paid the entire customs duty along with interest thereon and even the penalty imposed in the original order, he also appropriated the same. 4. The appellant has challenged the impugned order mainly on the ground that they will be entitled to depreciation while calculatin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ntitled for depreciation. In support thereof they cited the following case laws wherein depreciation has been allowed while the de-bonding export oriented units : (i) Khabros Steel India Ltd. vs. CCE, Jaipur reported in 2006 (194) E.L.T. 117 (Tri, - Del.); (ii) Anjaleem Enterprises Pvt. Ltd. vs, CCE & CUS, Vadodara reported in 2007 (210) E.L.T. 204 (Tri.-Ahmd,); (iii) CC, Chandigarh vs. Advance Components Engg. reported in 2014 - TIOL - 1322 - CESTAT - DEL.; (iv) Kumar Housing Corporation Lt .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

en auctioned and the sale proceeds appropriated. Since the capital goods are no longer in the possession of the appellant, the customs duty is not liable to be paid by them. 8. The learned DR appearing for the revenue countered this view of the appellant. He argued that the facility of depreciation while calculating the duty due on the capital goods at the time of de-bonding of EOU was available only in cases where the capital goods were allowed to be sold by the Development Commissioner. In the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

percent of their production. It is an admitted fact that, even though the appellant started its manufacture and export, the business of the unit did not take off as expected. By January 1997 the unit was closed and was no longer in a position to undertake any manufacture and export of their goods. The notification No. 13/81- customs was replaced by the successor notification No. 53/87 customs dated 3rd of June 1997. This notification deals with the disposal of capital goods imported for setting .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

an amount equal to the customs duty leviable on such goods on depreciated value thereof and the rate in force on the date of payment of such duty ; (b) Such clearance of goods (including container, suitable for repeated use) other than those specified in clause(a), may be allowed on payment of customs duty on the value at the time of import and at rates in force on the date of payment of such customs duty; Explanation-the depreciation in respect of goods covered by clause(a) shall be allowed for .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

operating under EOU scheme for capital goods cleared in. DTA: For every quarter in the 1st year-4%-16% in the 1st year For every quarter in the 2nd year-3%-12% second-year For every quarter in the 3rd year-3%- 12% third-year For every quarter in the 4th year-2.5%-10% for the fourth year and thereafter subject to maximum of 90%. 11. From a careful reading of the above clause of the notification No. 53/97 customs dated 3rd of June 1997, it is seen that the capital goods at the time of clearance w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

9. However as we have noted in the earlier paragraphs, this order was received by the appellant only in the year 2011. As per the directions of the Tribunal in the 1st round of litigation, the Commissioner was directed to pass a de-novo order. Accordingly the impugned order came to be passed. Meanwhile we find from records that the appellant has chosen to pay the duty, interest and penalty in the year 2011 in terms of Commissioner's order in the original proceedings and has since de- bonded .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Forum
what is new what is new
  ↓     bird's eye view     ↓  


|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version