Case Law Details
Tyco Electronics Corporation India (P) Ltd. Vs Commissioner of Central Excise & Service Tax (CESTAT Bangalore)
CESTAT Bangalore held that destruction of obsolete goods allowed to EOU on payment of duty on scrap value. Accordingly, held that when goods are destroyed EOU is not liable to pay duty on original value at the time of import.
Facts- The Appellant is an EOU manufacturing connectors and other items. As part of their routine business, they have imported raw material and components and also procured goods from DTA without payment of customs duty and excise duties in terms of Customs Notification No. 52/2003-Cus dated 31.03.2003 and Notification No. 22/2003-CE dated 31.03.2003 respectively.
Since there were obsolete items in their ware house, the appellant vide letter dated 01.09.2010 sought permission from the Department for destruction or disposal of obsolete imported raw material and components. They have also informed that destroyed goods will be sold as scrap and duty would be discharged on the scrap value of obsolete raw materials.
However, Adjudicating authority directed the Appellant to destroy or dispose the goods only after payment of duty on the assessable value at the time of import with interest till date of payment of duty. Aggrieved, an appeal was filed by the appellant before the Commissioner Appeals, however, the same was rejected. Aggrieved by the said impugned order, present appeal is filed.
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