9911796707
TMI Blog2006 (8) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... that the respondent is a Cricketing Institution in India and a Charitable Trust registered under the Mumbai Public-Trust Act, engaged in the activity of promotion of she game of Cricket in Mumbai and Thane. They organize various events like Test Matches, One Day Tournaments, Free Coaching, Seminars etc. The respondents organized Wills World Cup in the year 1996, for which purposes they required Mega Vision Colour Matrix Score Board and Flood Lighting equipment. The said goods were imported by the respondents under claim of exemption in terms of ad hoc exemption order No. 331 dated 19-12-95, vide which the importers were granted exemption from payment of whole of Customs duty and additional duty subject to the fulfilment of certain condition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal relates to violation of condition No. (ii) of the exemption order dated 19-12-95. According to the Revenue, after the Wills World Cup tournament was over, the appellants conducted test matches at Wankhede Stadium for which tickets were sold and revenue of around Rs. 7 crores was earned by sale of tickets. As such, it is the revenue s case that by putting the Wankhede Stadium to commercial use, the use of Score Board and flood lighting equipment during such matches amounted to commercial use of the same. For the above purposes, show cause notice dated 12-12-2000 was issued alleging violation of Condition No. (ii) of the ad hoc exemption order. The notice, accordingly proposed confirmation of demand of duty of Rs. 4,97,61,974/- in terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... challenged the value adopted by the department on a step down depreciation method, on the ground that it is an internationally known fact that electronic items do not depreciate in the conventional manner due to rapid change in technology become obsolete in short span of time and even attain 0% value. 6. After considering the above contentions, the Commissioner, vide his impugned order arrived at a finding that no conditions of ad hoc exemption order was violated by the importers, thus justifying confirmation of demand of duty. As regards the importer s prayer to pay duty on the said goods and to use the same for commercial purpose, he arrived at a depreciated value of Rs. 1,24,40,483/- and require the importers to pay duty of Rs. 90,19,3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcial use of the same. In terms of the ad hoc exemption order, the goods were required to be installed at Wankhede Stadium in Mumbai and the importers were permitted to import these goods without payment of duty, the same were imported and installed. It has to be kept in mind that the said goods are in the nature of capital goods and not consumable items, which would have lasted only during the Wills World Cup 1996. Merely because the said equipment continued to be installed in the stadium which stages other matches and value profits, by itself, is not sufficient to conclude that the said equipment was put to commercial use. The Commissioner has in our view rightly concluded that the importers being a Charitable Trust had engaged in the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls regarding year of manufacturing, the depreciation may be calculated from the date of invoice i.e. 18-12-1995 till the dale of actual payment of duty. In this regard, the maximum depreciation that can he permitted is 70% in terms of MOF s guidelines vide letter F.No. 493/124/86-Cus.-VI dated 19-11-1987, as the score board is now more than 7 years old. Therefore, the depreciated value works out to US $ 3,50,920.50 (CIF) + 1% landing Charge = US $ 3,54,429.705. The then prevailing exchange rate was 1 US $ = Rs. 35.10 and duty rate was 50% + 15%. Accordingly, the depreciated value works out to Rs. 1,24,40,483/- and the duty payable is Rs. 90,19,350/- on this Electronic Score Board . The Revenue has contested the above finding on the ground ..... X X X X Extracts X X X X X X X X Extracts X X X X
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