Important Points to be noted regarding DTA Sale by EOUs - Central Excise Practice Manual (OLD) - Central Excise

Important Points to be noted regarding DTA Sale by EOUs In respect of DTA sale under clauses (a) to (h) of Paragraph 6.9 of FTP, prohibition or regulation under any law effecting import thereof in force at the time when such goods are imported, will be applicable at the time of DTA sale. The duty on goods being cleared into DTA is exempted only if exemption notification has been issued by DOR (MOF) specifically providing exempting fully or partially such supplies in DTA. Otherwise, full duty as leviable under proviso to section 3(1) of Central Excise Act, 1944 is payable on such supplies made in DTA. End use based exemption notifications issued under Customs Act 1962 would be applicable in case of DTA sales and Deputy/Assistant Commissioner incharge of the EOU would act as if he is the officer of customs as if posted at the port and would ensure compliance of the conditions of the end use based exemption notification issued under Customs Act with reference to DTA sale by EOU. (CBEC Instruction issued vide F.No. 305/83/94-FTT dated 15.09.1994). Provisions have been incorporated in the Customs Tariff Act, 1975 to charge Safeguard duty/ Anti-dumping duty on inputs/raw materials, imported without payment of safeguard duty/ Anti-dumping duty by an EOU, when cleared into DTA as such or used in the manufacture of final products which are subsequently cleared into DTA. In case of units working under Fast Track Clearance Procedure for EOU in terms of para 6.38 of the HOP, additional responsibility lies with the jurisdiction Central Excise officers as the EOU may opt to avail DTA sale entitlement at concessional rate of duty without obtaining permission of the Development Commissioner. In such cases the unit would be only submitting the prior intimation only to the Development Commissioner. (Para 6.38.8 of HOP and para 2(H) of CBEC Circular No. 12/2005-Customs, dated 04.03.2005 . The eligibility for concessional rate of duty should be verified wherever required with reference to the intimation submitted.