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Removal of dutiable goods to DTA against EPCG Invalidation letter, Central Excise

Issue Id: - 108883
Dated: 15-7-2015
By:- deepak kalambate

Removal of dutiable goods to DTA against EPCG Invalidation letter


  • Contents

Dear Sir,

We have received Invalidation letter (issued by DGFT) in our name for supplying capital goods in local market.

Please Let us know procedure for removal of dutiable goods in local market without payment of duty against EPCG Authorisation (Invalidation letter).

Regards,

Deepak

Posts / Replies

Showing Replies 1 to 5 of 5 Records

Page: 1


1 Dated: 16-7-2015
By:- CS SANJAY MALHOTRA

Dear Deepak,

Supplies against EPCG Invalidation letter would be on payment of duty as is done in regular course of business. You need to mention on the phase of Invoice "" Supplies against EPCG Invalidation / Authorisation No............"

Further process would be that either of BUYER OR SUPPLIER has to claim TED (Terminal Excise Duty) Refund from the office of jurisdictional DGFT for which procedure as specified under Chapter 5 of FTP 2015-20 is to be followed.

regards

 


2 Dated: 16-7-2015
By:- deepak kalambate

Dear Sir,

Is there C.Ex. Notification for this?

We have already supplied material without payment of duty under C.Ex Invoice against this EPCG License.

Now who has to pay C.Ex duty?

Please advise.


3 Dated: 16-7-2015
By:- CS SANJAY MALHOTRA

Dear Deepak,

Excise Duty is to be paid by the manufacturer at the time of clearance of goods from his factory against EPCG Authorisation with invalidation letter. Para 8.3 prescribes for claiming refund of TED (Terminal Excise Duty) either by the manufacturer or receiver of goods.

Excise Duty exemption exists in case of supplies against International Competitive Bidding Agreements and for same Excise procedure is specified.

regards


4 Dated: 18-7-2015
By:- deepak kalambate

Dear Sir

The buyer has obtained EPCG license for import of Capital Goods at ZERO percent duty. Later on he applied for invalidation letter for indigenous procurement of similar goods.

There will be ZERO percent customs duty if he procured same goods from other country. Then why C.Ex. duty is applicable for domestic procurement against same license.

Please advise.


5 Dated: 18-7-2015
By:- CS SANJAY MALHOTRA

Dear Deepak,

Please understand that Custom Notification exists for Exemption of Duty in respect of Import of Capital Goods against EPCG Licence. for e.g. Custom Notification No. 16/2015-Customs dated 01.04.2015, hence the goods are exempt from Import Duties.

Further no Central Excise Notification exists for Excise Duty Exemption in respect of supplies under EPCG with invalidation letter, exception being in case of supplies under International bidding competitive agreements.

Hope above clear your doubts.

 


Page: 1

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