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TMI Blog2016 (10) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... rehouse Licence No.15/2006 vide AC, Customs & Central Excise, Hyderabad letter dated 06-04-2006. 1.3 The goods were imported in the year 2006 and after nearly five years of use for the intended purpose, the appellants were allowed to de-bond the goods in the year 2011, by STPI vide their NOC letter dated 15-03-2011. 1.4 However on de-bonding, the department insisted for payment of duty on the original value of the equipment, without allowing depreciation on the ground that said Notification No. 153/93-Cus does not have any specific provision for allowing Depreciation . 1.5 Department vide a letter dated 21-01-2011 informed the appellants to pay full duty . Accordingly, appellants paid full customs duty of Rs. 1,90,29,233/- under protest. 2. Aggrieved, the appellants filed an appeal to the Commissioner (Appeals), who vide Order in Appeal dated 13-06-2011, dismissed the same. Hence appeal C/2641/2011. 3. Appellants also filed refund claim of Rs. 1,01,69,425/- on the ground depreciation not allowed at time of debonding their capital goods which was rejected by original authority vide order dated 19-08-2011 and by lower appellate authority vide Order-in-Appeal da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Units in the Electronics Hardware Technology Parks (EHTP) and Software Technology Parks (STP) appointed by the notification of the Government of India in the Ministry of Industry, Department of Industrial Development No. S.O. 117(E), dated the 22nd February, 1993. (ii) The importer uses the said goods only for the purpose of export of software. (iii) The said imported goods shall be under customs bond and subject to such other conditions as may be specified by the Assistant Collector in this behalf. (iv) The importer agrees to - (a) bring the said goods into the unit and use them within the unit in connection with the export of software; (b) not to move the said goods from the unit without the approval of Assistant Collector of Customs; and (c) to use the said goods only for the purposes of export of software. (v) The importer shall produce a certificate to the Assistant Collector of Customs from the concerned Chief Executive of the Software Technology Parks Society set up by the Government of India, Department of Electronics, to the effect that the said imported goods are to be installed or used in the unit and that the importer of such goods has been authorised b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacture or development of software, data entry and conversion, data processing, data analysis and control data management or call center services for export by Software Technology Park (STP) unit, or a unit in Software Technology Park Complex under the export-oriented scheme (hereinafter referred to as the unit); or (iii) manufacture and development of electronics hardware or electronics hardware and software in an integrated manner for export by an Electronic Hardware Technology Park (EHTP) unit or a unit in Electronic Hardware Technology Park Complex under the export-oriented scheme (hereinafter referred to as the unit); or (b) - from the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty, if any, leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely :- (1) The importer has been authorised by the Development Commissioner to establish the unit for the purposes specified in clauses (a) to (e) of the opening paragraph of this notification; (2) The unit carries out the manufacture, production, packaging or job-work or service i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia. " Explanation - For the purposes of this notification,- (i) Board of Approval means the authority appointed by the Central Government in exercise of the powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951 (65 of 1951) and the rules made under that Act; (ii) - (iii) - (iv) export-oriented undertaking has the same meaning as assigned to hundred percent. Export-oriented undertaking in clause (ii) to the Explanation of sub-section (1) of section 3 of the Central Excise Act, 1944 (1 of 1944); (v) - (vii) Inter-Ministerial Standing Committee means a committee appointed by the Government of India in the Ministry of Industry (Department of Industrial Development) vide notification No. S.O. 117(E), dated the 22nd February, 1993; (viii) - (ix) Software Technology Park (STP) unit means a unit established under and in accordance with Scheme notified by the Government of India in the Ministry of Commerce and Industry vide notification No. 4(RE-95)/92-95, dated 30th April, 1995 and approved by the Inter-Ministerial Standing Committee; 8. By the appellants own admission, the impugned goods were imported under Notification No.153/199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y EOU/EPZ/STP/EHTP units vide notification No.71/2000-cus and 40/2000 CE both dated 22-05-2000 Salient features of the changes were conveyed vide CBEC circular No.49/2000-cus dated 12-05-2000. Para 17 of the circular which dealt with the depreciation norms for capital goods at the time of debonding, is reproduced as under: Depreciation norms for capital goods 17. As per para 9.35 of HOP, at the time of debonding, depreciation upto 90% is allowed in respect of capital goods. The maximum limit (i.e.90%) is achieved over a period of 8 years. For computer and computer peripherals, accelerated depreciation was allowed i.e. the limit of 90% was achieved over a period of 4 years and 3 months. Under the revised HOP, further accelerated depreciation for computers and computer peripherals has been provided i.e. maximum limit of 90% would be achieved over a period of 2 years and 9 months in lieu of 4 years and 3 months as at present. Board s Circular 27/98-Cus, dated 21.4.98, provides depreciation norms for computer and computer peripherals upto the limit of 90%, and for the capital goods other than the computers upto a limit of 75%. Circula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xt two years subject to a maximum of 70%. The said norms were modified vide Circular, dated 11-4-1997, wherein the depreciation norms were changed to 7% 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, Notification No. 22/2003-C.E., dated 31-3-2003 provides for depreciation on capital goods procured independently. Thus from the circulars issued by C.B.E. & C. from time-to-time, it is clear that depreciation has to be allowed in respect of the capital goods, from the date of installation/use of capital ..... X X X X Extracts X X X X X X X X Extracts X X X X
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