9911796707
TMI Blog2023 (6) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... made by determining depreciation up till 31.12.2002. It is also noted that the exemption notification also do not require the determination of duty on the date of expiry of warehousing license but it is till the date of payment of duty that is for Commissioner has held. There are no merits in the appeal filed by the Revenue which is dismissed. - Excise Appeal No. 86619 of 2013 - FINAL ORDER NO. A/85853/2023 - Dated:- 25-4-2023 - HON BLE MR. SANJIV SRIVASTAVA , MEMBER ( TECHNICAL ) And HON BLE DR. SUVENDU KUMAR PATI , MEMBER ( JUDICIAL ) Shri Sunil Kumar Katiyar , Assistant Commissioner, Authorized Representative for the Respondent Shri V. M. Doiphode , Advocate for the Appellant ORDER PER : SANJIV SRIVASTAVA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Excise Act, 1944 in terms of the directions given by Hon ble CESTAT vide para 5.4 of Order dated 29.11.2011. 2.1 Revenue has filed this appeal stating following grounds:- 4.1 The Hon ble CESTAT vide order under reference (para 5.4 of the order) directed the Commissioner to re-quantify the duty amount only in respect of the raw material and consumables lying in stock with M/s TFCL from the date of expiry of warehousing license in accordance with the Law. Similarly duty on capital goods could be demanded only after grant of depreciation on the capital goods at the rate prevalent on the date of expiry of the warehousing licence. Therefore before arriving at the total liability of duty on the unused raw materials, finished/semi-fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cause Notice dated 27.12.2006 the duty demanded on Good/Items lying in Bonded Customs Warehousing is Rs35,95,131.33. However, the Adjudicating authority bas at Para 33.3 of the said order has arrived at the duty of Rs. 15,17,853/-. The Adjudicating authority has calculated the duty as per the duty rate prevailing in the year 2012-13 (Sept. 2012). As per the Hon'ble CESTAT order dated 29.11.2011 the duty on Good/ Items lying in Bonded Customs Warehousing lying in stock was to be calculated on the date of expiry of the warehousing licence. The Adjudicating authority has therefore erred in calculating the Customs duty at the rate prevailing in the year 2012-13 (Sept. 2012) and not on the date of expiry of warehousing licence which as per S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judicating authority has therefore erred in determining duty on these semi-finished containers treating them as excisable goods, without recordings any findings to this effect and taking their value on the basis of Valuers report and at the rate prevailing in the month of November, 2012. 4.5 The Adjudicating authority has held that duty on capital goods after grant of depreciation at rate prevalent works out to Rs. Nil as worked out in the divisional report as well as that worked out by the assessee and has therefore found that no duty is leviable on capital goods. The divisional report has allowed depreciation on capital goods upto the year 2006-07 and has arrived at the value as Nil in respect of both imported as well as indigeneou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial Economic Zone, addressed to the Commissioner of Central Excise, Thane - II. With respect to the second five year block period commencing from 2002-03 to 2006- 07, it is confirmed in the said letter that the unit has achieved positive NFE of Rs. 9.39 lakhs on cumulative basis. Therefore, question of demand of any customs or excise duty on account of non-fulfillment of export obligation does not arise and we hold accordingly. 5.2. The unit had sought for debonding. At the time of debonding, what can be demanded is the customs duty on the unutilized raw material which are lying in stock, at the rate of duty prevalent at the time of payment of duty on the original value of importation. As far as capital goods are concerned, what can b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under Rule 173Q/Rule 25 of the Central Excise Rules, as it stood at the relevant time and consequent imposition of penalty. The ratio of the order in the Navbharat case cited supra applies squarely to the facts of the present case. 5.4. In view of the above, we set aside the impugned order and direct the Commissioner to re-quantify the duty amount only in respect of the raw materials and consumables lying in stock with the appellant on the date of expiry of the warehousing licence, in accordance with law. Similarly, duty on the capital goods can be demanded only after grant of depreciation on the capital goods at the rate prevalent on the date of expiry of the warehousing licence. In the facts and circumstances of the case, we find ..... X X X X Extracts X X X X X X X X Extracts X X X X
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