Prohibition on DTA Sale for Specified EOUs - Central Excise Practice Manual (OLD) - Central Excise

Prohibition on DTA Sale for Specified EOUs No DTA sale entitlement is permissible in case of motor cars, alcoholic liquors, tea (except instant tea) pepper pepper products, packaging/labeling/segregation/ refrigeration unit/ compacting /micronisation /pulverization/granulation/ conversion of monohydrate form of chemical to anhydrous form or vice-versa. In case of unit set up for repair, re-conditioning, or re-engineering, no DTA sale entitlement accrues to the unit and DTA sale is not allowed. All DTA sale entitlement accrues only when unit has achieved positive NFE cumulatively on the basis of FOB value of exports. The words FOB value of exports refers to physical exports only. Therefore, the value of deemed exports made by the unit is not considered while determining the FOB value of exports. However, the sales made to special economic zone are taken into account for the limited purpose of arriving at FOB value of exports by EOU units provided payment for such sales are made from EEFC accounts. Such supplies are covered under notification No. 46/2001-Central Excise (NT), dated 26.6.2001 and are subject to conditions, procedures, class of exporters specified under CBEC Circular No. 581/18/2001-CX, dated 29.6.2001 as amended.