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Determining the date of clearance of goods for the purpose of duty rate calculation. Analysis: The case involves a unit in an Export Processing Zone manufacturing and exporting latex gloves using duty-free goods. A show cause notice was issued for recovery of Customs and Central Excise duty, confiscation of unutilized imported and indigenous capital goods, and imposition of penalties. The Commissioner ordered the confiscation of goods, imposition of fines, penalties, and duty demands. The main issue was the date for levy and collection of duty. During the hearing, the appellants argued that the crucial decision to be made was regarding the date for duty levy and collection. The Tribunal considered the functioning of units in Export Processing Zones under bond. It was deliberated whether duty could be demanded if a unit decided to cease operations in the zone and what date should be considered as the clearance date for duty levy and collection. The Tribunal noted that in Export Processing Zones, the Development Commissioner has the authority to de-bond units. Upon de-bonding, the unit owner can clear goods by paying duty. Until de-bonding, permission for goods clearance is required. The date of de-bonding was deemed significant as the date for duty rate determination for goods clearance on payment of duty. Therefore, the Tribunal held that the date of de-bonding is crucial for the rate of duty calculation for goods clearance on payment of duty. Consequently, the appeal was allowed for re-calculation of duty amounts based on the date of de-bonding. The appeal was disposed of accordingly, emphasizing the importance of the de-bonding date in determining the duty rate for goods clearance in Export Processing Zones.
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