https://www.taxtmi.com/caselaws?id=789474 Under the exemption scheme for a 100% EOU, customs duty on imported capital goods was not attracted merely because the unit failed to achieve the prescribed export obligation or NFEP. The governing condition for capital goods was their import, installation and use within the bonded premises for export-oriented manufacture, and the record showed compliance with that requirement. A later notification invoked by the Revenue was treated as inapplicable because the default period pre-dated it and no retrospective operation was shown. As the substantive duty demand failed, the consequential penalty under Section 112(a) of the Customs Act also could not survive. en-us Wed, 30 Jul 2025 00:00:00 +0530 Thu, 09 Apr 2026 08:09:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789474 Under the exemption scheme for a 100% EOU, customs duty on imported capital goods was not attracted merely because the unit failed to achieve the prescribed export obligation or NFEP. The governing condition for capital goods was their import, installation and use within the bonded premises for export-oriented manufacture, and the record showed compliance with that requirement. A later notification invoked by the Revenue was treated as inapplicable because the default period pre-dated it and no retrospective operation was shown. As the substantive duty demand failed, the consequential penalty under Section 112(a) of the Customs Act also could not survive. Case-Laws Customs Wed, 30 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789474