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TMI Blog2005 (3) TMI 651X X X X Extracts X X X X X X X X Extracts X X X X ..... as directed by the Secretariat of the Industrial Approvals. The Commissioner has noted various case laws cited by the appellant and Board's Circular to make the point that value addition norms are monitored by the Ministry of Commerce through its organisation i.e. DGFT. He has noted that no evidence has been brought on record from the DGFT stating that export obligations, including value additions, were not fulfilled. He has also noted that any notice to be issued on this basis should be at the time of de-bonding, in close coordination with the DGFT. He has accepted this contention raised by the appellants and has held that any allegation about the violation of export obligations made by the department should be fully substantiated by evide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by 100% EOUs. He has held that the Notification would have been worded differently stating that all Capital Goods installed in the software units, would be eligible for the exemption; however this is not the case. He has held that the exemption Notification cannot be stretched to include all items like Kitchen equipments imported by the Canteen located in the software unit. He has also rejected the plea that once the essentiality certificate is given by the sponsoring authority that the goods are used in the development of software, the department should not go into it. He has noted that sponsoring authority is the licencing authority while the DGFT is in-charge of monitoring the export obligations, in accordance with the Import policy. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een monitored by DGFT, then the department does not have jurisdiction to issue Show Cause Notice without consulting the DGFT and the Board. In this regard, he has relied on the judgment rendered by the Tribunal in the case of Indian Furniture Works v. CC, Bangalore - 2000 (126) E.L.T. 722 (Tribunal). It has been held in this citation that the Ministry has since regulated the procedure to be adopted by the Customs authorities in such cases so that such a hiatus between the orders of two authorities, both acting under law, may be avoided. It has also been noted that the department can issue Show Cause Notice to safeguard revenue if it is felt that the conditions relating to duty exemption because of non-fulfilment of export obligations have b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Solitaire Machine Tools P. Ltd. - 2003 (152) E.L.T. 384 (Tri. - Mumbai). He also submitted that the Revenue cannot charge and recover interest when duty liability itself is not maintainable and the same is required to be refunded to them. The learned Counsel also relied on a large number of judgments to support the plea that the items involved in the matter are all Capital Goods and the findings recorded that they are not so, is against the ruling rendered by the Tribunal as noted by him: Sl. No. Particulars Subject 1. Decision of the Tribunal in C. Cus & CE v. Solitaire Machine Tools P. Ltd. - 2003 (152) E.L.T. 384 (T) (1) Depreciation on capital goods can be claimed upto the date of payment of duty and not till date of applicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition. 4.The learned SDR pointed out that the appellants are not eligible for the benefit of the Notification as the goods have not been utilised for the purpose of production of goods and he distinguished the judgments. 5.On a careful consideration, we notice that the Commissioner has clearly noted and accepted the appellant's plea that no evidence has been brought on record from DGFT stating that the export obligations including value addition norms were not fulfilled. He has also accepted that part of the items are Capital Goods while he has rejected the plea to grant benefit in respect of large number of items. On a careful consideration, we find from the Tribunal rulings holding that the items are covered under the catego ..... X X X X Extracts X X X X X X X X Extracts X X X X
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