2010 (5) TMI 893 - AT - Customs

Summary

Issues involved: Stay petition for waiver of pre-deposit of amounts adjudicated by the adjudicating authority; Confirmation of demand of customs duty foregone by the Revenue when the appellant (a 100% EOU) imported capital goods and inputs for establishing and exporting Rose cut flowers under Customs private bonded warehouse.

Confirmation of demand of customs duty foregone:
The appellant's consultant argued that the DGFT authorities had debonded the appellant's EOU due to non-completion of export obligations before the show cause notice was issued. He claimed that all capital goods and inputs procured by the appellant were put to use for exports, and depreciation should be considered while calculating duty forgone. On the other hand, the Revenue's representative stated that the customs bonded warehouse license was not renewed, making the appellant liable for the duty foregone. The Tribunal noted that the adjudicating authority failed to consider the appellant's eligibility for depreciation on capital goods used for exports. The impugned order was set aside, and the matter was remanded for a fresh consideration, emphasizing the eligibility for depreciation and destruction of capital goods and inputs.

Conclusion:
The Tribunal allowed the appeal by way of remand, directing the adjudicating authority to re-consider the issue in light of relevant case laws and principles of natural justice. The stay petition was also disposed of accordingly.