Assessment of capital goods at the time of de-bonding of 100% EOU/EPZ units - Allowance for depreciation - Customs - F. No. 305/136/92-FTT

Assessment of capital goods at the time of de-bonding of 100% EOU/EPZ units - Allowance for depreciation F. No. 305/136/92-FTT Dated 5-6-1992 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Assessment of capital goods at the time of de-bonding of 100% EOU/EPZ Units - Allowance for depreciation - Regarding. Reference to Board's instructions F. No. 305/52/85-FTT, dated 15th April, 1987 providing for depreciation in value only to such Capital Goods which have been used by the 100% EOUs through the entire period of export obligations as stipulated by the Board of Approvals. It was also mentioned that in the case of 100% EOU, no depreciation would be permissible if the Unit is being de-bonded without completing the period of export obligation prescribed by the BOA. The Export-Import Policy for 1992-97 vide para 107 permits the 100% EOU/EPZ Units to debond before the normal stipulated period on their inability to achieve export obligation, value addition or other requirements subject to the satisfaction of the Board of Approval (BOA). In the light of the Policy changes announced in the EXIM Policy, Board's earlier instructions have been reviewed. It has been decided by the Board to grant depreciation in value in all the cases of assessment of Capital Goods cleared by 100% EOU/EPZ Units subject to the Units obtaining the permission of BOA. The scale of depreciation, however, remains unchanged. Board's instructions dated 15th April, 1987 may deem to have been modified to this extent.