TMI Blog2018 (12) TMI 619X X X X Extracts X X X X X X X X Extracts X X X X ..... ord that during the course of visit by the Central Excise officers to the unit of the appellant, the registered premises was in possession of some other entity and not with the appellant. Thus, it is evident that as per the condition of the notification as well as the terms of the bond, the appellants had not fulfilled the conditions of use of capital goods/equipment for development of software, meant for export - confirmation of duty/interest demand by the authorities below cannot be faulted with. Depreciation on removal of capital goods from the factory - Held that:- The submissions of the appellants regarding value of depreciated capital goods have not been considered and the duty demand has been confirmed in entirety - the matter sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. XCEL Telecom Pvt. Ltd., and that except three air-conditioners, no other bonded goods procured by the appellant were available in the said premises. Thus, the department contended that the appellant had contravened the provisions of the notifications dated 22.10.1991 and 4.1.1995 and accordingly, the customs and central excise duties on the capital goods should be recovered from the appellant. On the basis of investigation, show cause proceedings were initiated against the appellants seeking for recovery of duty demand and for imposition of penalties. The matter was adjudicated vide order dated 1.11.2010, wherein the imported goods and indigenously procured goods were confiscated, with the option to redeem the same on payment of redemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demands is in conformity with the statutory provisions. 5. Heard both sides and perused the records. 6. Notification No.140/91-Cus., dated 22.10.1991 exempts specified goods, when imported into India by the software development unit, for the purpose of development of software etc. The central excise duty exemption has also been provided under Notification No.1/95, dated 4.1.1995 for domestically procured capital goods for use in development of software for the purpose of export. The duty exemption provided in the said notifications is subject to certain conditions. The primary objective of the duty exemption provided in the said notification is to develop the software, which are to be exported out of the country. It has further been p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , on perusal of the letter dated 16.3.2011, addressed to the Commissioner (Appeals), we find that the learned Advocate had enclosed the worksheet, showing depreciated value of the capital goods. On perusal of the said letter vis- -vis the observations recorded by the learned Commissioner (Appeals), we find that the submissions of the appellants regarding value of depreciated capital goods have not been considered and the duty demand has been confirmed in entirety. Since the appellants through their Advocate had specifically submitted the worksheet, showing depreciated value of capital goods, which has also been acknowledged by the office of the Commissioner (Appeals), we are of the view that the matter should be remanded to the learned Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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