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TMI Blog2006 (10) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... ch started commercial production w.e.f. 27-1-1986. The unit availed the benefit of exemption from payment of Customs duty under the provisions of Notification 13/81-Cus., dated 9-8-1981 and imported capital goods involving duty of Rs. 28,60,110/- during the period 1985-86 to 1990-91. The unit exported computer software and services during the above period and stopped manufacturing and export activity from July, 1990 onwards. Show cause notice dated 6-11-1997 was issued to the importer for recovery of Customs duty of Rs. 28,60,110/- on imported capital goods on the ground of failure to fulfil the condition of the notification by not achieving value addition and export obligation norms and proposing confiscation of the capital goods , a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st the setting aside of the levy of interest. 4.Pursuant to the order dated 14-9-2001 of the Commissioner (Appeals) upholding the duty liability the Dy. Commissioner worked out the depreciated value of the capital goods/computers and parts thereof by computing the period of depreciation from the date capital goods were ex-bonded until the date when they were sought to be cleared in DTA as per letter dated 7-7-1994 of the Ministry of Industry granting de-bonding. The Commissioner (Appeals) rejected the plea that the period of depreciation should extend up to the date of payment of duty. This has given rise to Appeal No. C/830/2003. 5.We have heard both sides. 6.As regards liability to duty, in the absence of any notification exempting the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period for which depreciation is to be allowed, in the light of the Tribunal's order in Commissioner of Customs & Central Excise, Vadodara v. Solitaire Machine Tools Pvt. Ltd. - 2003 (152) E.L.T. 384 we hold that depreciation shall be allowed up to the date of payment of duty as per the language of the explanation to Notification 13/81 itself, and rejecting the contention of the Revenue that depreciation shall be allowed only till the date of application for de-bonding. We therefore hold that the period of depreciation should extend up to the date of payment of duty - the importers have not cleared the goods which are still in the bonded warehouse. We therefore set aside the impugned order and allow the Appeal No. C/830/2003. 9.The appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X
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