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TMI Blog2018 (9) TMI 1387X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 112(b)(ii) of Customs Act, 1962, and under section 117 of Customs Act, 1962 respectively. The appellant had imported two sets of 'automatic hand glove manufacturing machines' valued at Rs. 1,46,43,990/- in 1989 on which duty of Rs. 1,29,75,002/- had been foregone. The order-in-original no. KLH-EXCUS-000-COM-057-15-16 dated 29th March 2016 of Commissioner of Central Excise & Service Tax, Kolhapur arrived at a finding of failure on the part of appellant to fulfill the export obligation prescribed in the Letter of Permission issued by the Government of India in the Department of Industrial Development. 2. The matter had reached the Tribunal on an earlier occasion and, upon the direction in remand to allow the depreciation on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wed for the period from.. Upto the date of payment of duty". The contention of the Revenue that the depreciation shall be allowed only till the date of application for debonding is contrary to the provision of Notification itself.' 6. On the issue of eligibility for full depreciation on capital goods, when subject to proceedings for failure to comply with prescribed export obligation, the Tribunal has, in Shriram Grape Growers Cooperative Society Ltd v. Commissioner of Central Excise & Customs, Nasik [Order no. A/85347-85348/2018 in appeal nos. C/289 & 491/2009] held that 'It is, therefore, adequately certain that the duty liability on imported, or indigenously procured, capital goods is erased by sheer efflux of time. The appellant has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se and Customs, has in circular no. 14/2004-Cus dated 13th February 2004, clarified that '....... In the notifications (refer Explanation to Para 4 of the Notification No. 52/2003-Cus. and Explanation to Para 8 of the Notification No. 22/2003-C.E.) it has been also provided that depreciation shall be allowed for the period from date of commencement of commercial production of the unit or where such goods have been received after such commencement, from the date such goods have come into use for commercial production, till date of payment of such duty. The Board vide Circular 29/2003-Cus., dated 3-4-2003 [2003 (153) E.L.T. T54], also has clarified that depreciation could be allowed up to 100%. xxxx 3. The matter has been examined by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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