SURYOVONICS LTD. Vs. COMMISSIONER OF CUSTOMS, HYDERABAD

JUDGEMENT

(1.) THIS appeal arises out of and is directed against the Order -in -Appeal No. 1/2001 (H -I) Cus., dated 21 -5 -2001 passed by the Commissioner of Customs and Central Excise, Hyderabad.

(2.) THE appellants are 100% EOU. Shri Jagapathi Rao, learned Counsel appearing for the appellants submitted that the point to be considered in this appeal is whether the raw materials imported and procured indigenously without payment of duty under 100% EOU scheme are eligible for payment of duty under Section 23(1) of the Customs Act, 1962 when such goods while kept in the Customs Bonded Warehouse have totally lost their value. He said that when the goods are lost by nature or damaged or value of such goods has been deteriorated they are eligible for remission under Section 23(1) of the Customs Act. He fairly conceded that raw material procured indigenously is not eligible for remission. Similarly, the good that are fully manufactured in the EOU which are under bond are also not eligible for remissions. Accordingly he withdrew the plea with reference to the remission of duty in respect of raw material procured indigenously as well as goods manufactured in the EOU. Nevertheless (goods) raw materials imported are eligible for remissions in terms of Section 23(1) of the Customs Act. In support of his contention he referred to the following decisions.

(3.) HEARD Shri Narasimha Murthy learned DR for the Revenue.