The appellant, an EOU/EHTP unit, is eligible for exemption under...

The appellant, an EOU/EHTP unit, is eligible for exemption under Notification No. 12/2012-Cus at the time of debonding of imported goods. The customs duty should be calculated at the effective rate applicable at the time of debonding. The appellant's procedural compliance by furnishing a bond of Rs. 1000 crores is sufficient for claiming the exemption. The exemption can be claimed at debonding, even if not availed at the time of importation. The demand for duty and interest raised in the impugned order is not justified. The CESTAT allowed the appeal, holding that the appellant is entitled to the exemption benefit under Notification No. 12/2012-Cus at debonding.

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