Duty payable at the time of exit from EOU Scheme - Duty is payable on Capital goods, Raw Material, components, consumables, Spares and Finished Goods in stock - No duty is payable on goods in process

Some important points for payment of duties at the time of exit form EOU Scheme:

2009 -TMI - 33513 - CESTAT BANGLORE

In respect of in-process goods, there is no authority for demanding duty. As per Para 6.18 of the Foreign Trade Policy 2004-09, an EOU may opt out of the scheme with the approval of the Development Commissioner subject to the payment of Excise Duty. In the policy, only imported and indigenous capital goods, raw materials, components, consumables, spares and finished goods in stock are mentioned. There is no mention about the in-process goods. In the absence of the mention of the in-process goods in the policy, there is no authority for demanding duty on the in-process goods. Hence, we set aside the demand of duty on the in-process goods.

As regards the value of the imported goods at the time of de-bonding, de-bonding of goods may be allowed on payment of duty on the value at the time of import and the rate of duties in force at the time of clearance. Since the value at the time of import has been adopted, the dollar rate adopted at the time of import is correct.

For full text of judgment - visit 2009 -TMI - 33513 - CESTAT BANGLORE