Advance DTA Sale - Central Excise Practice Manual (OLD) - Central Excise

Advance DTA Sale The EOUs are allowed the facility of Advance DTA sale for the purpose of trial production of the goods. The permission in this regard is given by the DC. The value of such advance DTA is limited to entitlement accruable on the exports envisaged in the first year of operation of the unit. The advance DTA sale permitted to the unit is adjusted against the subsequent DTA sale entitlements within a period of two years. However, drugs and pharmaceutical units can make advance DTA sale of the production on the exports envisaged in the first two years, adjustable against subsequent entitlement within a maximum period of three years from the date of commencement of production by the unit. Advance DTA sale is also available in case of capacity expansion/product diversification. In such cases, the unit is entitled to advance DTA sale linked to the exports envisaged from the expansion or new production stream or through product diversification. No advance DTA sale is admissible to the DTA unit converted into EOU except in respect of new production stream as a result of change of technology. As advance DTA sales made by the unit are on payment of concessional rate of duty, there may be cases where after availing of advance DTA sale, the unit is not able to earn DTA sale entitlement subsequently. In such a situation, the differential duty has to be recovered from such units. Advance DTA sale is not covered under B-17 Bond , and therefore, separate bond has to be required to be executed with the Assistant Commissioner /Deputy Commissioner (Central Excise) to undertaking cover the difference between the duty paid on advance DTA sale and the full duties applicable on such goods.