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TMI Blog2018 (4) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... the Respondent DR. SATISH CHANDRA The present appeal is filed against the Order-in-Original No. C. Noe V/CUS/15/75/2011 Adjn Sl. No.01/CUS/2012 dated 31/01/2012. The Hon'ble High Court of Karnataka in the Writ Petition No. 41744/2017 has passed an order on 02.11.2017 where a direction was issued to the Tribunal to dispose of the appeal within three months. 2. The brief facts of the case are that in the year of 1997/ the appellant has established a factory being a 100% Export Oriented Unit (EOU) to manufacture and export of Silk Ties and Silk Fabric. In terms of the LOP granted on 06.10.1997, the appellants were permitted to set up the EOU for manufacture and export of the above mentioned items. For the purpose, appellant ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the clause 3(iv) as per the notification reproduced herein above, the importer has to discharge such duty liability only in the case of raw materials, components, spares and consumables. The duty foregone on the capital goods has been excluded from the payment of duty as the condition for exemption on the capital goods was only limited for installation of the capital goods and used within the unit for the manufacture of goods for export. As recorded earlier by us, it is undisputed that the capital goods which were procured by claiming benefit of exemption under Notification No. 126/ 94-Cus was installed and used for production of goods for export. We find that as per notification, the demand of the duty on the capital goods cannot be susta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther than capital goods) procured duty free, duty can be levied if the unit fails to achieve net foreign exchange earning as a percentage of exports (NFEP) and export Performance (EP) as specified in Appendix 1 of the Exim Policy within one year of importation or procurement of such goods or within such extended period not exceeding one year as the Asstt. Commissioner or Dye Commissioner may allow on being satisfied that there is sufficient cause In other words, the Notification provides for levy of duty only on raw materials, components, spares and consumables for failure to achieve NFEP and there is no provision in the Notification for demand of duty on capital goods in the event of unit failing to achieve NFEP. This view has already ..... X X X X Extracts X X X X X X X X Extracts X X X X
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