https://www.taxtmi.com/caselaws?id=794970 Destruction of obsolete duty-free inputs within an Export Oriented Unit after due intimation does not constitute clearance for home consumption or diversion where there is no misuse or breach of the scheme. The Foreign Trade Policy permitting such destruction must be read harmoniously with Customs and Central Excise exemption notifications. The 2015 amendments expressly permitting destruction of inputs aligned the notifications with the existing policy, removed ambiguity and are described as clarificatory and retrospective. Consequently, no duty arose on the destruction; related interest and penalties lacked basis absent suppression, wilful misstatement or intent to evade duty. en-us Mon, 13 Jul 2026 00:00:00 +0530 Tue, 14 Jul 2026 14:11:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794970 Destruction of obsolete duty-free inputs within an Export Oriented Unit after due intimation does not constitute clearance for home consumption or diversion where there is no misuse or breach of the scheme. The Foreign Trade Policy permitting such destruction must be read harmoniously with Customs and Central Excise exemption notifications. The 2015 amendments expressly permitting destruction of inputs aligned the notifications with the existing policy, removed ambiguity and are described as clarificatory and retrospective. Consequently, no duty arose on the destruction; related interest and penalties lacked basis absent suppression, wilful misstatement or intent to evade duty. Case-Laws Customs Mon, 13 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794970