2007 (5) TMI 392

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....R, for the Appellant. Shri V. Sridharan, Advocate, for the Respondent. [Order per : Jyoti Balasundaram, Vice-President]. - In the present appeal, the Revenue challenges the dropping of a demand of Customs duty of Rs. 2,18,59,050 on moulds and dies (capital goods) initially imported by the assessee on loan basis which demand was raised on the ground that the respondents herein had violated....

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.... of the respondents for the manufacture of export articles and it is only in the event of non-installation and non-utilization of the capital goods in the manufacture of export articles that duty demand can be raised in terms of the Notification. Clause 6(1) of Notification 53/97 provides for levy of duty in the case of capital goods if such goods are not proved to the satisfaction of the Asstt. C....

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....iod not exceeding one year as the Asstt. Commissioner or Dy. Commissioner may allow on being satisfied that there is sufficient cause. In other words, the Notification provides for levy of duty only on raw materials, components, spares and consumables for failure to achieve NFEP and there is no provision in the Notification for demand of duty on capital goods in the event of unit failing to achiev....