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TMI Blog2019 (1) TMI 1188X X X X Extracts X X X X X X X X Extracts X X X X ..... orted were not the same for the respective years of evaluation for compliance to determine the continuance of the privilege of duty exemption on capital goods and recovery of duties. We hold that the duty liability, if any, should be with reference to N/N. 52/2003-Cus. In the present dispute, the proceedings appear to have originated with completion of the period of warehousing which should be applicable only if warehoused goods were never put to use and, on completion of the warehousing period, the duty liability would be computed on value as assessed originally without benefit of depreciation. In the present circumstances, owing to utilization, depreciation is not deniable. The depreciation over the entire tenor would result in nil v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 1863/08.08.92 besides procuring of indigenously manufactured capital goods, valued at ₹ 5,01,871/- with duty foregone of ₹ 1,43,745/-, under notification no. 123/81-CE dated 12th June 1981. Commercial production commenced in April 1992 and though obliged to export goods valued at ₹ 1950.67 lakhs between 1992-93 and 2001-02, the actual export did not exceed ₹ 30.96 lakhs with consequent deficit of ₹ 1919.71 lakhs. 2. On behalf of the appellant it is contended that their failure to fulfill export obligation could be traced to natural causes that affected the entire industry. Drawing attention to substantial changes effected to the scheme by the newly notified Foreign Trade Policy, and reflected in the notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be compliant with the export obligation prescription. Non-compliant units would be subject to proceedings for recovery of duty foregone on the procurement of raw materials in excess of that utilized for manufacture of export goods and on consumables as well as the amortised value of capital goods in proportion to the ascertained deficiency. Thus, the export oriented unit scheme has undergone changes over a period of time and, more significantly, during the tenor of the letter of permission of the appellant. The amending notifications issued under Customs Act, 1962 and Central Excise Act, 1944 superceded, and substituted, the existing notifications. Hence, the condition subject to which the goods were imported were not the same for the res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... With elapse of time since the commencement of commercial production , the value of the machinery depreciates to nil and demand of duty is thus erased. At the same time, the proceedings for recovery of duty, under the applicable notification granting the exemption from duty, for annual deficiency is independent, and exclusive, of the proceedings for debonding. In the present dispute, the proceedings appear to have originated with completion of the period of warehousing which should be applicable only if warehoused goods were never put to use and, on completion of the warehousing period, the duty liability would be computed on value as assessed originally without benefit of depreciation. In the present circumstances, owing to utilization, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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