Indian Kanoon - Search engine for Indian Law

- 16 -

NC: 2025:KHC:48515 HC-KAR informed that during the period 2000-2010, the Noticee had procured duty-free capital goods totaling to Rs 241.28 Lakhs (duty-free imports Rs 200.53 Lakhs+ indigenous goods Rs 40.75 Lakhs) and that the value of exports of IT/IT enabled services for which Softex is certified is Rs 405.00 Lakhs. In other words, it is indisputably clear that the Noticee had utilized the duty- free capital goods and hence were entitled to depreciation as per the governing notifications. In other words, contrary to what was held by the original authority vide Order-in-Original No 03/2012dated21-02-2012,theNoticee had used the duty-free goods for export of IT/IT Enabled Services in their EOU. Therefore, they were entitled to depreciation as per Notification No. 52/2003-Cus dated 31-03-2003 .In this regard, the depreciation details as given in the table at Para 4 in page no. 67 of the submissions may be referred. In continuation of the above it is submitted that as mentioned in the SCN itself, the Noticee had obtained the EOU Licence on 14-11- 2000which was valid till 31-03-2007. During this period, the Noticee had exported IT/IT Enabled Services to the tune of Rs 405.00Lakhs as per STPI letterdated19th June2017 (supra). Although the period mentioned in the STPI letter is 2000-2010, the Noticee was in operation till 2007 and the entire exports had taken place during this period .Considering the above, duty payable, on all the computers and computer peripherals like servers ,UPS systems, Telematic Equipment, Antistatic Carpets. Telecommunications Equipment(Call Centre

- 17 -

NC: 2025:KHC:48515 HC-KAR Equipment),Vertica lCable Manager, Dell Power Edge, Software and Associated Hardware etc. becomes Nil as the depreciated value of the same after usage for a period of over five year shad become zeroasper Notification No. 52/2003-S.T. dated 31-03-2003 which is applicable imported to goods. Further, duty, if any, payable on indigenous goods other than computers and counter peripherals viz. Security Systems, Access Control Systems, Air Conditioners, DG Set etc. as peris the and Notification No. 22/2003-C.E. dated 31-03-2003would also become zero since the date of debonding has to be taken as the present date. In this regard, the depreciation details as appearing in Para 8 in page no. 78 of the submissions may be referred .Notwithstanding the fact that the Director, STPI has categorically stated in their letter dated 19th June 2017 that the Noticee had exported services to the tune of Rs 405.00 Lakhs during the period 2000-2010, specimen copies of Softex Forms, invoices, bank realization certificates evidencing the export of services and realization of proceeds are placed on record. In view of the above, the demand is liable to be dropped and accordingly de novo order may be passed and issued.