2012 (4) TMI 571

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....ufactured by them are chargeable to Central Excise duty under Chapter 52 and 60 of the Central Excise Tariff. For manufacture of finished products for export, they had received indigenous capital goods and spare parts and accessories free of Central Excise duty and also some imported spare parts and accessories free of customs duty. They were allowed to be debonded by the Development Commissioner. In terms of the provisions of Central Excise Exemption Notification No. 22/2003-C.E., dated 31-3-2003 and Customs Duty Exemption Notification No. 52/2003-Cus., dated 31-3-2003, a 100% EOU at the time of debonding was required to pay Central Excise duty on the indigenous goods and customs duty on the duty free imported goods as per the provisions o....

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.... is a Central Excise duty which would be chargeable. Had the capital goods been imported capital goods, at the time of debonding the customs duty at the rate in force on the date of debonding/clearances would have been chargeable. There is no dispute that in terms of provisions of both these Notifications read with the provisions of Exim Policy, a 100% EOU at the time of debonding can be allowed to migrate to EPCG Scheme provided it has positive NFE. However, while the rate of customs duty chargeable on the capital goods imported under EPCG scheme has been prescribed under Notification No. 64/2008-Cus. issued under Section 25(1) of the Customs Act, 1962 and the same along with the education cess is 3.09%, on Central Excise side, there is no....