2011 (1) TMI 466

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....um Perborate and Hydrogen Peroxide. The EOU had procured indigenous and imported capital goods as well as indigenous and imported raw materials/consumables without payment of duty under the EOU scheme. The EOU had failed to achieve required Net Foreign Exchange (NFE) and failed to fulfill export obligation. After due process of law the Commissioner of Customs, Guntur demanded duty of Rs. 5,21,27,308/- from CIL and imposed on CIL a total penalty of Rs. 2,40,10,000/-. The impugned order also confiscated the capital goods procured by the appellant indigenously as well as through import and offered to redeem the same on payment of a total fine of Rs. 1,50,00,000/-. 3. As per the LOP issued in 1995, the EOU was permitted to manufacture and....

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....rol of the Department to hear and dispose appeal impugning such order. We also note that the claim of the assessee that after allowing depreciation admissible as per the CBEC circulars and the relevant notification, duty due, if any, on the capital goods worked out to only Rs. 14,443/- is not without substance. In the circumstances the EOU has made a strong prima-facie case against the demand of entire exemption availed on the capital goods imported/indigenously procured. 5. According to the appellant, its export performance during the period of dispute has been as follows. Year Export of Sodium Perborate (Rs. In lacs) Export of Hydrogen Peroxide (Rs. in lacs) 1997-1998 84.02   1998-1999 103.18   1999-2000 41.39 ....