2006 (10) TMI 49

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....s' as 100% export oriented unit; which started commercial production w.e.f. 27-1-1986. The unit availed the benefit of exemption from payment of Customs duty under the provisions of Notification 13/81-Cus., dated 9-8-1981 and imported capital goods involving duty of Rs. 28,60,110/- during the period 1985-86 to 1990-91. The unit exported computer software and services during the above period and stopped manufacturing and export activity from July, 1990 onwards. Show cause notice dated 6-11-1997 was issued to the importer for recovery of Customs duty of Rs. 28,60,110/- on imported capital goods on the ground of failure to fulfil the condition of the notification by not achieving value addition and export obligation norms and proposing  c....

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....erred the Appeal No. C/3720/2001 against the setting aside of the levy of interest. 4.Pursuant to the order dated 14-9-2001 of the Commissioner (Appeals) upholding the duty liability the Dy. Commissioner worked out the depreciated value of the capital goods/computers and parts thereof by computing the period of depreciation from the date capital goods were ex-bonded until the date when they were sought to be cleared in DTA as per letter dated 7-7-1994 of the Ministry of Industry granting de-bonding. The Commissioner (Appeals) rejected the plea that the period of depreciation should extend up to the date of payment of duty. This has given rise to Appeal No. C/830/2003. 5.We have heard both sides. 6.As regards liability to duty, in t....