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Issues:
1. Denial of benefit of Notification No. 140/91-Cus. for imported capital goods. 2. Requirement to pay duty, penalty, and interest for goods deemed improperly removed. 3. Eligibility for depreciation on goods used in bonded premises. 4. Obligation to seek extension of warehousing period. 5. Justification of demands confirmed by the Commissioner. Analysis: 1. The appeal concerns the denial of the benefit of Notification No. 140/91-Cus. for imported capital goods warehoused under Section 61 of the Customs Act from 1993-98 without duty payment. The Department contends that failure to extend the warehousing period resulted in the goods being improperly removed, necessitating duty payment. 2. The appellant argues that the goods remained in bonded premises, thus not liable for duty, penalty, or interest. Citing precedents like Stelfast India P. Ltd. v. CC and I-Flex Solutions Ltd. v. CC, they claim eligibility for depreciation under Circular No. 29/03. Additionally, reliance is placed on judgments like Kiran Spinning Mills v. CC and Pratibha Processors v. UOI to support their position that the goods qualify as warehoused goods. 3. The learned JCDR asserts that the appellant should have applied for an extension of the warehousing period, failure of which justifies the Commissioner's demands. However, the Tribunal notes that the appellants are operating under the bonded warehouse scheme with an extended warehousing license, rendering duty demands unwarranted. 4. Considering the extended warehousing license, the Tribunal deems the demands improper in light of applicable judgments. Consequently, the appeal is allowed with any necessary consequential relief, highlighting the legal and proper status of the impugned order. This judgment clarifies the obligations and entitlements concerning warehoused goods, emphasizing the importance of compliance with extension procedures and the impact of extended licenses on duty liabilities. The legal principles established in previous cases and circulars play a pivotal role in determining the outcome of disputes related to duty payments and warehousing extensions.
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