Job-work by EOU for DTA Unit - Central Excise Practice Manual (OLD) - Central Excise

Job-work by EOU for DTA Unit In order to provide for utilization of idle capacity of EOU, the job work for DTA exporter by these units has been permitted. The export in such a case would not be counted under the parameter of EOU scheme and no benefit would accrue to the EOU and the facility would be limited to utilization of idle capacity of capital goods etc. When EOU is carrying out the job working activity for export on behalf of DTA unit, then on export of such goods, DTA unit is eligible for claim of duty drawback. However, in such cases, DTA unit is not eligible for All Industry Rate of Drawback. The DTA exporter is eligible for payment of Brand Rate of Drawback against duties suffered on inputs, on submission of proof of payment of duty. Further, the goods have to be exported from the EOU itself and cannot be allowed to be taken back to the DTA unit.