9911796707
TMI Blog2014 (12) TMI 895X X X X Extracts X X X X X X X X Extracts X X X X ..... gned order, the duty demand of Rs. 1,91,06,342/- consisting of Central Excise duty of Rs. 1,13,37,692/- and Customs duty of Rs. 77,68,650/- has been confirmed against the appellant M/s Kumar Housing Corporation Ltd. by denying the benefit of Notification No. 52/2003-Cus., dated 31-3-2003 and 153/93-Cus., dated 13-8-1993. Interest on the above duty demand has also been confirmed and an equivalent amount of penalty has been imposed on the appellant under Section 112(a) of the Customs Act, 1962 and penalties of Rs. 10 lakhs and Rs. 5 lakhs has been imposed on Shri Lalit Kumar Jain, Director and Shri Santosh Maheshwari, Vice-President (Fin.) under Section 117 of the Customs Act, 1962. Aggrieved of the same, the appellant is before us. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant accordingly worked out a duty liability on depreciated value amounting to Rs. 56,58,163/- and paid the same vide challan dated 11-8-2010 and asked for No Dues Certificate vide letter dated 4-10-2010. Subsequently, on 18-2-2011, the Excise department issued a show cause notice dated 18-2-2011 proposing to recover the entire excise duty forgone amounting to Rs. 1,91,06,342/- vide Notification No. 153/1993-Cus. and 22/2003-C.E. The show cause notice was adjudicated vide the impugned order and the duty demands were confirmed. Aggrieved of the same, the appellant is before us. 3. The learned Counsel for the appellant submits that the appellant is willing to pay excise/customs duty on the capital goods procured indigenously as well ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s upto a limit of 90%. To implement the changes made in the HOP, it has been decided to allow a further accelerated depreciation for computer and computer peripherals as under :- For every quarter in the first year @ 10% For every quarter in the second year @ 8% For every quarter in the third year @ 7% For every quarter in the fourth year and thereafter @ 5% Subject to a maximum of 90% Circular Nos. 27/98, dated 24-4-98 and 43/98-Cus., dated 26-6-98 stand modified to the above extent." Therefore, since the appellant is a 100% EOU, the appellant is rightly entitled for depreciation benefit at the time of de-bonding in terms of EOU scheme under the STP and also in terms of the Circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sis and control data management or call center services for export. Keeping in view the scope of activities permitted in a STP unit, the meaning of the term "export of software" mentioned in Notification No. 153/93-Cus., dated 13-8-1993 needs to be construed in line with the activities permitted under Notification 52/2003-Cus., dated 31-3-2003. 3. In view of the above, it is clarified that the term "export of software" used in Notification No. 153/93-Cus. includes all the activities of manufacture or development of software, data entry and conversion, data processing, data analysis and control data management or call center services for export as permitted under Notification No. 52/2003-Cus., dated 31-3-2003. 4. Wide publicity m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) appearing for the Revenue reiterates the findings of the adjudicating authority and says that since the Notification did not provide for any depreciation, the same cannot be granted. 5. We have carefully considered the submissions made by both sides. 5.1 This is the second round of litigation and on the earlier occasion when the matter came up before the Tribunal, the matter was remanded back to the adjudicating authority for considering the excise duty liability on which no finding had been given in the earlier order. Since the issue involved in the present appeal lies in a narrow compass, we take up the appeal itself for consideration and disposal after dispensing with the requirement of pre-deposit and with the consent of b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per quarter in the first year, 6% per quarter in the second year and 5% per quarter for the third year subject to maximum of 70%. Later on vide Circular No. 49/2000, dated 22-5-2000, the norms were further liberalized and the maximum amount of depreciation was permitted at 90% for a period of 8 years and for computer and computer peripherals, accelerated depreciation was allowed. Later on these depreciation rates were incorporated in the notification itself and Notification No. 52/2003, dated 31-3-2003 provides for depreciation norms in para 4 of the Notification itself for capital goods other than computer and computer peripherals and computer and computer peripherals separately. The upper limit of depreciation is 100%. Similarly, Notific ..... X X X X Extracts X X X X X X X X Extracts X X X X
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