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TMI BlogClearances of exciseable goods from 100% Export Oriented Units/Units in the Export Processing Zones to the Domestic Tariff Area (DTA) - Manner of calculation of duty - Clarification regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... nes to the Domestic Tariff Area (DTA) - Manner of calculation of duty - Clarification regarding. Certain doubts have been expressed regarding the manner of calculation of the amount of excise duty payable on clearances of exciseable goods manufactured in a 100% EOU/EPZ unit into Domestic Tariff Area in terms of Notification No. 97/91-C.E., dated 7.10.1991 (since rescinded) and Notification No.101/93-C.E., dated 28-12-1993. 2. In terms of Section 3 of the Central Excises and Salt Act, 1944, exciseable goods produced or manufactured in a 100% EOU/EPZ unit are liable to such excise duty in an amount equal to the aggregate of duties of customs which would be leviable under Section 12 of the Customs Act, 1962, on like goods imported into In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... examined by the Board and it has been observed that the two Central Excises Notifications No.97/91 as also No.101/93 clearly stipulate that 50% of each of the duties of Customs should be levied for DTA clearances. The basic duty is collected in terms of the Schedule to the Customs Tariff Act, additional duty is collected in terms of Section 3 of the Customs Tariff Act and the auxiliary duty in terms of the respective Finance Act. In this situation, the wording "each" used in the Notification 97/91-CE and 101/93-C.E. is significant for the purposes of calculating/collecting the various duties of customs viz., the basic duty, the auxiliary duty and the additional customs duty (CV duty). In short, the effective or the collectable basic duty/au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TARIFF AREA Assuming value of goods Under Section 14 of Customs Act, 62 = Rs. 1000/- Basic Customs duty = 100% ad valorem Auxiliary duty = 50% ad valorem Additional duty = 20% ad valorem METHOD A Basic Customs duty = 50% of Rs. 1000/- (read with notfn. 97/91-CX) = Rs. 500/- Auxiliary duty = 25% of Rs. 1000/- (read with notfn. 97/91-CX) = Rs. 250/- Total basic + auxiliary = Rs. 750/- Value for the purpose of calcula ..... X X X X Extracts X X X X X X X X Extracts X X X X
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