2004 (7) TMI 533

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....nt [Order per : S.S. Sekhon, Member (T)]. - Appellant was an 100% EOU set up. They were permitted by the Ministry of Industry to close the EOU operations on condition of Re-export of the entire capital goods imported to set up the 100% EOU. They were also requested to pay all custom/excise duties on the stocks of raw material, components, consumables, spares as well as finished goods with penal....

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....ages valued at Rs. 3,37,203/- said to be lost/pilfered from the warehouse at Kalamboli while being on way to export to Belgium. (ii)     Demand notice dated 24-10-1993 under Section 72(b) of Customs Act, 1962 of Rs. 19,62,434/- being duty on Raw material lying unutilised in the Private Branded Warehoused as also interest of Rs. 12,12,623/- accrued up to 31-10-1993. (iii)&nbsp....

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....e. (b) In appeal filed by the EOU, the Commissioner (Appeals) found - "The appellant re-exported machinery to Belgium vide shipping bill number SK dated 25-4-1991. Since goods were re-exported Customs duty was not demanded by lower authority. However, machineries were lying in the appellants bonded warehouse beyond the warehousing period of one year. Therefore, the lower authority correctly....

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..... The interest is held to be an accessory to the principal and if principal is not payable, so is the interest on it. Therefore, the interest on goods exported out of India is not payable since duty thereon is not demanded. (b)     As regards the raw material and finished goods, the rate of duty has to be levied as per the Apex Court decision in case of Simplex Casting, [2003 ....