2019 (1) TMI 1188

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....ustoms under section 72 of Customs Act, 1962 and duties of central excise amounting to Rs. 1,43,745/- under rule 176 of the erstwhile Central Excise Rules,1944. The appellant is a '100% export oriented unit' operating under that scheme in the Foreign Trade Policy and, in terms of 'letter of permission' dated 27th May 1992, was required to export the entire production, excepting rejects up to 5%, for a period of ten years and with minimum value addition of 41.2%. Capital goods, valued at Rs. 11,71,875/-, were imported foregoing duty of Rs. 29,87,110/- by recourse to notification no. 13/81-Cus dated 9th February1981 read with notification no. 53/97-Cus dated 3rd June 1997 vide bill of entry no. 1863/08.08.92 besides procuring of indigenously ....

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....ms and duties of central excise issued under section 25 of Customs Act, 1962 and section 5A of Central Excise Act, 1944 to which are attached conditions that are to be fulfilled. The scheme envisages procurement of capital goods, consumables and raw materials without payment of duty and, since 2003, the consequent export obligation is prescribed with reference to net foreign exchange outflow though, in the period preceding, the prescription not only obliged the unit to neutralise the outflow but also to add prescribed value in the manufacturing process. Now, units that are net foreign exchange positive on annual, as well as cumulative, performance is to be considered to be compliant with the export obligation prescription. Non-compliant uni....

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....per annum. It is also clear from the circular of Central Board of Excise and Customs supra that the value of the machinery is to be written down to 'nil' over a ten year period. Accordingly, at the time of debonding, equipment that has been put to use for ten years would not be liable to duty. The duty that is to be collected on plant and machinery that is yet to complete ten years in the possession of the unit would be such as is leviable on assessable value equal to the original value netted for such annual depreciation of ten percent. In the instant case, that the machinery had been put to use is evident from the finding that 'commercial production' commenced in 1992. With elapse of time since the commencement of 'commercial production',....