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TMI Blog2009 (4) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... Ms. Sudha Koka, SDR, for the Respondent. [Order per: T.K. Jayaraman, Member (T) (Oral)]. - This appeal has been filed against Order-in-Original No. 12/2008, dt. 1-8-2008 passed by the Commissioner of Customs, Bangalore. 2. We heard both sides. 3. The appellants are 100% EOU manufacturing parts of earth moving equipment, conveyer parts and combustion engine parts. They had obtained the necessary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as well as the Customs Authorities. It is only with the permission of the Customs Authorities, these machineries had been shifted. As the machines were not functional, they could not be put to use immediately. In the meantime, the Customs Officers visited the premises and found that the said machines were not being put to use. Consequently, proceedings were initiated against the appellants resulti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustoms. It was pleaded that demand of duty on these machines which are still in the bonded premises is not legal. The appellants had cleared the goods only with the knowledge of the department. They had not been removed to any premises other than the approved bonded premises. In any case, it was urged that the demand of duty, at this stage, when the goods are in the bonded premises is rather prema ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bonded premises is not legal. Even the Board's circular calls for certain liberal approach with regard to the extension of warehousing period in respect of the capital goods by EOU/EHTP/STP. 5. The learned departmental representative stated that though the goods were shifted to the new premises, they were never put to use. The plea of repair appears only to be an after thought. In these circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erformance is to the extent of Rs. 7,123/- lakhs for the period of five years. In these circumstances, in our view, the demand of duty on the 21 capital goods is rather premature. In any case, in terms of the Notification, the duty will be payable only at the time of de-bonding. There is no merit in the impugned order. Hence, we set aside the same and allow the appeal with consequential relief. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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