2009 (2) TMI 674

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....ed in both the appeals is one and the same. Hence, we are passing a common order. 2.1 The appellants imported duty free goods under Notification No. 52/2003-Cus. They transferred the bonded goods to another EOU on inter unit transfer basis after obtaining the required permission from the Development Commissioner/Board of Approval. However, revenue proceeded against the appellants on the ground that the transfer of capital goods can only be made and in the present case, the goods namely modular furniture and anti static carpets cannot be considered as capital goods. Holding such a view, the Original Authority has confirmed duty along with interest. Penalties have also been imposed. 3. It was submitted by the advocates that th....

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....nbsp; Indian Charge Chrome Ltd. v. CCE - 2008 (228) E.L.T. 55 (Tri.-Kolkata) 3.2 The goods are only in customs bond and no duty can be demanded when they are under the customs bond as such demand would be premature. CC v. Infosys Technologies Ltd. - 2003 (159) E.L.T. 863 was relied on. 3.3 It was argued that the show cause notices barred by limitation. The duty free bonded goods have been transferred to other STP units on a rental lease agreement on IUT basis as per the provisions of the Foreign Trade Policy and the said Notification, after obtaining the required permissions. Each IUT is accorded approval of the Customs authorities and each IUT shipping bill has been counter-signed by the customs authorities. It was also arg....

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....e has relied on a decision of the Tribunal in the case of Hindustan Adhesive Ltd. v. CCE, Meerut - 2000 (117) E.L.T. 125 (Tri.) wherein it was held that the capital goods means the goods used in production, processing and bringing about change in the substance for the manufacture of the final products. We are not in agreement with the view taken by the learned Commissioner. The definition of capital goods in terms of the EXIM Policy is very wide. Modular furniture and anti static carpets have been permitted to be imported duty free in terms of the permission granted by the Development Commissioner. Further, this Bench has held that modular furniture/anti static carpet are entitled for benefit of exemption notification under the EOU scheme. ....