DTA sale of By-product & Rejects - Central Excise Practice Manual (OLD) - Central Excise

DTA sale of By-product Rejects The DTA clearance of by-products and rejects on concessional rate of duty is not allowed to the EOUs, which have failed to achieve the positive NFE. In such cases, the EOUs are liable to pay full duty. Further, in case of these units, DTA clearance of finished goods is not allowed even on payment of full duty. As for waste/scrap/remnants, the same are allowed to be sold in DTA on payment of concessional rate of duty within overall limit of 50% of FOB value of exports. In case of sale of scrap/waste/remnants beyond this limit, the same is allowed on payment of full duty. As for DTA clearance of goods manufactured by the EOUs which are not excisable (e.g. cut flowers) or attract NIL rate of Customs duty when imported into India, the duty foregone on inputs and consumables etc. procured/imported duty free under exemption notifications, which have gone into production of such non-excisable goods or into production of goods attracting NIL customs duty when imported into India, is to be recovered.