Destruction of obsolete import goods allowed under amended export-oriented unit notification, with procedural approval treated as a formal requirement.

Amended export-oriented unit rules permitted destruction of obsolete or unserviceable imported capital goods, raw materials and finished goods with approval of the appropriate authority. The goods had become obsolete and unfit for manufacture, and the Board's circular clarified that destruction could be allowed under the notification then in force, while permission to destroy goods outside the zone was only a procedural requirement. On that basis, destruction was treated as allowable under Notification No. 71/2000-Cus., and approval was to be granted accordingly.

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Issues: Whether permission could be granted for destruction of obsolete imported capital goods, raw materials and finished goods under the amended export-oriented unit notification.

Analysis: The goods had become obsolete and unfit for manufacture, and the relevant export policy and notification were amended before the impugned order to permit destruction of such goods with the approval of the appropriate authority. The Board's circular also clarified that goods imported under an earlier notification could be allowed destruction under the notification then in force, and that permission to destroy goods outside the zone where required was only a procedural matter.

Conclusion: The request for destruction was held allowable and permission was directed to be granted by the appropriate authority under Notification No. 71/2000-Cus. dated 22-5-2000.

Final Conclusion: The appeal succeeded to the extent that the assessee was entitled to seek destruction of the obsolete goods under the amended notification framework.

Ratio Decidendi: Where the governing exemption scheme is amended to permit destruction of obsolete or unserviceable goods, such permission may be granted in accordance with the current notification and accompanying procedural clarifications.

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