TaxTMI 
TaxTMI 
2017 (10) TMI 795
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....are that the appellant were registered as 100% EOU and were granted Customs Bonded Warehouse Licence under Section 58 of Customs Act, 1962. A case was booked by DRI against the appellant for clandestine removal of machinery from their warehouse. The Customs Bonded Warehouse Licence was suspended by the Assistant Commissioner on 08.05.2008. As a consequence of the said order of Assistant Commissioner, the appellant was required to pay Customs and Central Excise duty on the capital goods, which were brought under the bond. Meanwhile, on 18.08.2005 the appellant was given permission for conversion from 100% EOU Scheme to EPCG Scheme by the Development Commissioner subject to payment of duty on imported capital goods, which the appellant paid @....
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....ty prescribed by the said authority. He further contended that on the said conversion, their duty liability in respect of capital goods had been changed from 0% to 5% of the Customs duty subject to fulfilment of their export obligation. He further contended that the value of duty foregone under Notification 22/2003-CE has been included in the export obligation under EPCG Scheme. He further contended that since after conversion the Customs duty @ 5% on all capital goods and the CVD is included in computing the amount of export obligation, demand of duty is not justified after conversion to the EPCG Scheme. He relied on the decisions in the case of CCE Vs. Sahajanand Technologies Pvt. Ltd. - 2015 (325) ELT 625 (S.C.) and Sahajanand Technologi....
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.... the capital goods is applicable to the indigenous capital goods or the appellants are required to pay the duty which was forgone when the appellants availed Notification No. 22/2003-CE. 7. We find that the appellant had imported some of the capital goods and cleared the same without payment of duty under Notification No. 53/1997-Cus. while other capital goods were procured indigenously and cleared without payment of duty under Notification 22/2003-CE. DRI Ahmedabad booked a case again the appellants for clandestine removal of some of the imported machinery from the bonded premises. The duty involved on such clandestinely removed machinery was 13,22,559/-, which was paid by the appellants along with interest at full rate. The Customs Bon....
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....PCG Scheme also covers capital goods domestically procured is not correct. I do not fine any such provision in the scheme of EPCG. The argument that the export obligation cast on the unit also includes capital goods locally procured does not help the appellant, considering clear provision in the policy regarding applicability of EPCG scheme only for import of capital goods. Domestic procurement of capital goods by export oriented unit is covered under Notification No.22/2003-CE dated 31.03.2003 as amended. This Notification also takes care of the situation where the capital goods are not used for the purpose for which intended under the Notification. There is a clear provision in the Notification that the 100% EOU before it procures the cap....