TMI Blog2002 (11) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... d 6-2-81 as amended. 3. Brief facts of the case are that in 1987 the appellant M/s. Solitaire Machines Tools Pvt. Limited obtained permission to set up an EOU for the manufacture of Cincinati-20M Centreless Grinder. The project involved importation of capital goods worth over 6.4 lakhs US$. After being in manufacture till 1996, the appellants sought permission to debond from the 100% EOU scheme. On debonding, the appellant became liable to pay duty of customs and excise in respect of imported capital goods, raw materials in stock etc. The disputes that arose with regard to the quantum of duty so payable is the subject matter of present appeals. 4. First we take up for the consideration, Appeal No. E/1795-R/97-Mum filed by the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue authorities by valuation and computation of duty was computed by Customs only in March, 1997. The assessee contends that as the duty liability is to be worked out at the time of debonding of the goods, the entire period up to computation of duty was to be taken into account, while revenue has computed duty liability after allowing depreciation for the capital goods upto the period of filing of application i.e. October, 1996. 6. Items like Jigs and fixtures are for repeat, long time use in manufacture. Therefore, they form part of the equipment used in production, as opposed to raw materials, parts etc. which are consumed in manufacture. Evidently, they qualify to be treated as capital goods. Further, these items were specific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time of debonding. A perusal of the Notification No. 13/81 and the EOU provisions, makes it clear that duty liability upon debonding is in no way connected to discharge of export obligation. It is clear from the notification that under the EOU scheme imported goods were given exemption from duty as long as they were used for production of export goods. Thereafter, upon debonding the goods are treated as imported goods and subjected to duty as applicable to other import goods. That the original import was under an export obligation scheme makes no difference to duty liability. Therefore, there is no legal basis to the revenue's effort to link the duty liability to discharge of export obligation. 8. The second point raised in the appeal i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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