DTA sale by EOU - Payment of duty, Central Excise

[VENKATA SUBRAMANIAN VENKATACHALAM]

CAN ANY BODY HELP ME CLARIFY THE FOLLOWING POINTS? 1. DTA SALE BY EOU - IF SALES IS MADE TO A CUSTOMER WHO IS ENJOYING 100% DUTY EXEMPTION AS PER CLAUSE 6.9 OF FTP WHETHER THIS SALE IS CONSIDERED AS DTA SALES/DEEMED EXPORTS, WHETHER 50% DTA ENTITLEMENT INCLUDES THIS SALE ALSO? 2. IN THE ABOVE CONTEXT WHETHER ANY DUTY IS PAYABLE BY THE EOU UNITS SINCE THE MATERIAL IMPORTED/LOCALLY PROCURED IS WITHOUT PAYMENT OF DUTY? PLEASE ENLIGHTNE ME QUOTING RELEVANT PROVISIONS OF THE LAW/POLICY. VENKAT, CHENNAI

Posts / Replies

[R.S. Mangal]

As per para 6.9(1), an EOU can supply goods to holder of Advance Authorisation, DFIA,EPCG Holder . Such supply will be counted towards calculation of NFE and hence deemed export. Duty payable will be nil or as per extant exim scheme of Advance Authorisation, Dfia, EPCG. The 50% entitlement does not include such sale .