2014 (8) TMI 45

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..... depreciation is admissible on the value of capital goods imported but not used fully for the purpose of manufacture so as to discharge export obligation. According to the Revenue, while respondent has target of one lakh pieces to export, it exported 300 pieces during the entire export period. Upon debonding of unit, ld.Adjudicating authority allowed depreciation on the value of capital goods impo .....

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..... no discharge of export obligation fully by appellant for which entire amount of duty foregone at the time of import of capital goods shall be recovered without any concession to be given reducing value of the capital goods allowing depreciation. 5. Revenue's argument to deny depreciation does not appear to be reasonable for the reason that depreciation is admissible once there was export obli .....

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..... sible. Such mandate of circular provides basis to hold that rate of depreciation to be allowed shall be at prescribed percentage per annum of original value of the respective and type of capital goods imported duty free. This calls for set aside of the impugned order and matter remanded to the adjudicating authority to calculate the quantum of depreciation admissible keeping in view the mandate of .....

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