DTA sale by Gems and Jewellery EOUs - Central Excise Practice Manual (OLD) - Central Excise

DTA sale by Gems and Jewellery EOUs In case of Gems and Jewellery EOUs, the units are allowed to sell upto 10% of FOB value of exports of the preceding year in DTA subject to achievement of positive NFE. In case of sale of plain gold jewellery, Plain Silver Jewellery, studded gold jewellery, unsuitable/broken cut and polished diamonds, rough diamonds, precious and semi-precious stones or dead stock in Domestic Tariff Area, the units are allowed to pay concessional rate of duty as specified in the notification. (Reference: Sr. Nos. 8 to Error! Hyperlink reference not valid .). In addition to the above, under Sr. Nos. 5 to 7A of notification No. 23/2003-CE , certain specified textile items are also allowed to pay concessional rate of duty in case of DTA sales of such items by EOUs. The EOUs are allowed to remove the goods into DTA on an invoice. The invoice under Rule 17 of Central Excise Rules, 2002 is used both as a transport document and also as a document for determining the assessable value. EOUs can pay the duty by depositing the duty amount in the authorized bank or the duty can also be debited from the Personal Ledger Account if an account current is maintained. The CENVAT credit available in respect of goods manufactured by an EOU has been restricted for the recipient of the goods in terms of sub-rule (7) of Rule 3 of the CENVAT credit rules, 2004 .