9911796707
TMI Blog2006 (8) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... os. A/797-799/2006-WZB/(C.S.T.B.), - Dated:- 24-8-2006 - [Order per : S.S. Sekhon, Member (T)]. - The appellants are manufacturer and exporter and their directors. 1.2 Earlier the assessee company was the 100% EOU and for the purpose of manufacture of the goods they imported new as well as second hand used machinery and equipments under the EOU scheme and installed the same i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epreciated value of the capital goods in question has been correctly arrived at. 3. As per Paragraph 9.39 of the Handbook of Procedure, de-bonding of capital goods imported as second hand shall not be allowed under EPCG scheme. 4. No Customs Duty was paid on the second hand capital goods in question at the time of de-bonding. Now I proceed to decide the disputed aspect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the EOU was granted to the unit vide final order No. KFTZ/100% EOU/II/417/97-98 dated 4-11-1999. 5. Paragraph 9.39, prohibiting de-bonding of second-hand capital goods, was inserted in the Handbook of Procedure (1997-2002) vide DGFT Public Notice No. 33 (RE)-99)/l997-2002, New Delhi dated 1-10-1999. The dates and events mentioned above show that the permission for pre-mature de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod of recovery of customs duty under proviso to section 28 (1)(b) of the Customs Act 1962, could be applied as only applicable duties in respect of indigenous types of goods on 27-10-1999 on de-bonding was paid. This non-payment of duty on the depreciated value is held to be an intention on the part of the appellants to evade payment of Customs Duty on such capital goods, knowingly. The said duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being installed as Capital Goods. There is no transfer of the machinery to any other legal person. Therefore the new machinery will not become second hand the natures of second hand machinery in will not alter. Since the Annexure to the EPCG licence indicates the description of the goods as installed in situ in the EOU the benefit of the Licence cannot be denied DGFT authorities licence as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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