Levy of Customs Duty on EOU Capital Goods Not Justified Without Export Achievement

Commissioner of Central Excise Vs Such Silk International Ltd. (Karnataka High Court) Karnataka High Court adjudicated two appeals filed by the Revenue challenging the orders of the CESTAT, Bengaluru, concerning the levy of customs duty and penalties on capital goods imported by a 100% Export Oriented Unit (EOU). The assessee, Such Silk International Ltd., imported capital goods and raw materials duty-free under Notification No. 53/1997-Cus dated 03.06.1997, contingent on fulfilling export obligations (EO). While the unit commenced commercial production in March 2001 and initially exported goo...