TaxTMI 
TaxTMI 
2016 (10) TMI 74
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....ellants were issued 100% EOU Bonded Warehouse Licence No.15/2006 vide AC, Customs & Central Excise, Hyderabad letter dated 06-04-2006. 1.3 The goods were imported in the year 2006 and after nearly five years of use for the intended purpose, the appellants were allowed to de-bond the goods in the year 2011, by STPI vide their NOC letter dated 15-03-2011. 1.4 However on de-bonding, the department insisted for payment of duty on the original value of the equipment, without allowing depreciation on the ground that said Notification No. 153/93-Cus does not have any specific provision for allowing Depreciation . 1.5 Department vide a letter dated 21-01-2011 informed the appellants to pay full duty . Accordingly, appellants paid full customs duty of Rs. 1,90,29,233/- under protest. 2. Aggrieved, the appellants filed an appeal to the Commissioner (Appeals), who vide Order in Appeal dated 13-06-2011, dismissed the same. Hence appeal C/2641/2011. 3. Appellants also filed refund claim of Rs. 1,01,69,425/- on the ground depreciation not allowed at time of debonding their capital goods which was rejected by original authority vide order dated 19-08-2011 an....
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.... by the Inter-Ministerial Standing Committee for Hundred Percent Export Oriented Units in the Electronics Hardware Technology Parks (EHTP) and Software Technology Parks (STP) appointed by the notification of the Government of India in the Ministry of Industry, Department of Industrial Development No. S.O. 117(E), dated the 22nd February, 1993. (ii) The importer uses the said goods only for the purpose of export of software. (iii) The said imported goods shall be under customs bond and subject to such other conditions as may be specified by the Assistant Collector in this behalf. (iv) The importer agrees to - (a) bring the said goods into the unit and use them within the unit in connection with the export of software; (b) not to move the said goods from the unit without the approval of Assistant Collector of Customs; and (c) to use the said goods only for the purposes of export of software. (v) The importer shall produce a certificate to the Assistant Collector of Customs from the concerned Chief Executive of the Software Technology Parks Society set up by the Government of India, Department of Electronics, to the effect....
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.... with the production or packaging or job work for export of goods or services by export-oriented undertaking (hereinafter referred to as the unit) other than those referred to in clauses (b), (c) and (e), or (ii) manufacture or development of software, data entry and conversion, data processing, data analysis and control data management or call center services for export by Software Technology Park (STP) unit, or a unit in Software Technology Park Complex under the export-oriented scheme (hereinafter referred to as the unit); or (iii) manufacture and development of electronics hardware or electronics hardware and software in an integrated manner for export by an Electronic Hardware Technology Park (EHTP) unit or a unit in Electronic Hardware Technology Park Complex under the export-oriented scheme (hereinafter referred to as the unit); or (b) - from the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty, if any, leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely :- (1) The importer has been au....
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.... goods have come into use for commercial production to the date of payment of duty; 11. Nothing contained in this notification shall apply to the?11. goods imported by a service sector export-oriented undertaking as specified in clause (a) in the opening paragraph, who does not directly export services out of India. " Explanation - For the purposes of this notification,- (i) Board of Approval means the authority appointed by the Central Government in exercise of the powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951 (65 of 1951) and the rules made under that Act; (ii) - (iii) - (iv) export-oriented undertaking has the same meaning as assigned to hundred percent. Export-oriented undertaking in clause (ii) to the Explanation of sub-section (1) of section 3 of the Central Excise Act, 1944 (1 of 1944); (v) - (vii) Inter-Ministerial Standing Committee means a committee appointed by the Government of India in the Ministry of Industry (Department of Industrial Development) vide notification No. S.O. 117(E), dated the 22nd February, 1993; (viii) - (ix) Software Tec....
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....digenous capital goods, was prescribed, subject to an overall limit of 90% for computers and 75% for capital goods other than computers. This circular also was modified vide CBEC 43/98-Cus dated 26-06-1998. After issue of the revised Exim policy 1997-2002 and Handbook of Procedures(HOP) VolI, amendments were made in the provisions governing duty free import/procurement of goods by EOU/EPZ/STP/EHTP units vide notification No.71/2000-cus and 40/2000 CE both dated 22-05-2000 Salient features of the changes were conveyed vide CBEC circular No.49/2000-cus dated 12-05-2000. Para 17 of the circular which dealt with the depreciation norms for capital goods at the time of debonding, is reproduced as under: Depreciation norms for capital goods 17. As per para 9.35 of HOP, at the time of debonding, depreciation upto 90% is allowed in respect of capital goods. The maximum limit (i.e.90%) is achieved over a period of 8 years. For computer and computer peripherals, accelerated depreciation was allowed i.e. the limit of 90% was achieved over a period of 4 years and 3 months. Under the revised HOP, further accelerated depreciation f....
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.... when the capital goods were allowed de-bonding. However, the C.B.E. & C. issued Circulars right from 1994 onwards allowing depreciation on capital goods at the time of de-bonding. For instance vide Circular No. 314/19/94-FTF, dated 2-9-1994, the rate of depreciation on capital goods at the time of de-bonding of entities working under 100% EOU scheme was prescribed at the rate of 5% per quarter in the first two years and 4% per quarter for the next two years subject to a maximum of 70%. The said norms were modified vide Circular, dated 11-4-1997, wherein the depreciation norms were changed to 7% per quarter in the first year, 6% per quarter in the second year and 5% per quarter for the third year subject to maximum of 70%. Later on vide Circular No. 49/2000, dated 22-5-2000, the norms were further liberalized and the maximum amount of depreciation was permitted at 90% for a period of 8 years and for computer and computer peripherals, accelerated depreciation was allowed. Later on these depreciation rates were incorporated in the notification itself and Notification No. 52/2003, dated 31-3-2003 provides for depreciation norms in para 4 of the Notification itself for capital goods ot....