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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 ..... cribed export obligation, the Tribunal has, in Shriram Grape Growers Cooperative Society Ltd v. Commissioner of Central Excise & Customs, Nasik [2018 (3) TMI 205 - CESTAT MUMBAI] hes held that As on the date of the impugned order, the appellant has been in existence for over a decade and, by application of the straight-line depreciation approved by the Central Board of Excise & Customs, the value of capital goods would be nil. Consequently, no duty liability would arise. The annual export obligation is a function of the cost of inputs and the depreciation for the year; thus the value of the imported machinery is compensated by exports over a period of 10 years and any shortfall in any of those years, attributable to mismatch with the amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner 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 capital goods before determining the assessable value, the original authority did abate the value to the extent of 87.5%. 3. It is the contention of the Learned Counsel for appellant that the original authority had erred in excluding the period between date of in principle debonding and date of payment of duty from the period allowed for depreciation an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly 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 been a functioning export-oriented unit since 1992 and capital goods procured in that year should be eligible for depreciation over the period that the unit has been in existence. As on the date of the impugned order, the appellant has been in existence for over a decade and, by application of the straight-line depreciation approved by the Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... encement 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 Board. In terms of the above stated notification depreciation is admissible till the date of payment of duty. Therefore, there is no basis for contending that depreciation would be allowed for full year or quarter year only. 9. Considering the above facts and circumstances and the binding decision of the Tribunal, appellant is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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