Customs Duty of an EOU and the Fate of Obsolete Imports: Destroying Obsolete Goods without Paying Duty

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....rs and other items, imported raw materials and components and procured goods from DTA (Domestic Tariff Area) without payment of customs duty and excise duties, as per Customs Notification No. 52/2003-Cus dated 31.03.2003 and Notification No. 22/2003-CE dated 31.03.2003, respectively. The appellant sought permission from the Department to destroy or dispose of obsolete imported raw material and com....

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....ara 6.15(b) of the Foreign Trade Policy, which permits the destruction of capital goods, raw materials, consumables, spares, and scrap without payment of duty. * Circular No. 60/1999-Cus dated 10.09.1999 allows for the destruction of goods that are defective, damaged, or otherwise unfit for use without insisting on re-export, provided they are destroyed with the permission of the Customs authori....

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....cause they failed to use the imported goods for their specific purpose within the prescribed time limit. The Tribunal's decision, based on various precedents and legal provisions, favored the appellant's position. They emphasized that the appellant had requested permission to destroy the obsolete goods, even agreeing to pay duty on the scrap value. Furthermore, they cited Circular No. 60/....