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21 November 2011
Dear Sir,
I have a query relating to consequences of removal of indigenously procured non-excisable inputs as such in the DTA without the permission of the concerned authorities. What will be the penalty, interest and duty liability in case of such removal. Since the non-excisable inputs procured from DTA did not attract any excise duty, their removal as such in the DTA should also not attract any excise duty being a non-excisable goods. Also from which authorities the permission is required to be taken?
I have a query relating to consequences of removal of indigenously procured non-excisable inputs as such in the DTA without the permission of the concerned authorities. What will be the penalty, interest and duty liability in case of such removal. Since the non-excisable inputs procured from DTA did not attract any excise duty, their removal as such in the DTA should also not attract any excise duty being a non-excisable goods. Also from which authorities the permission is required to be taken?
RAMESH KUMAR VERMA
(Expert)
21 November 2011
yes,
Supplies from EOUs to a domestic unit, including a unit located in AEZ, can be counted for export performance only if these supplies are covered under Paragraph 6.9 of the Foreign Trade Policy.
for more info:
https://bangalorecustoms.gov.in/eou.htm
Supplies from EOUs to a domestic unit, including a unit located in AEZ, can be counted for export performance only if these supplies are covered under Paragraph 6.9 of the Foreign Trade Policy.
for more info:
https://bangalorecustoms.gov.in/eou.htm
21 November 2011
But Sir, I am asking in relation to the removal of indigenously procured raw material as such in the DTA. As the reply given by you is in relation to supply, I think supply is always related to the supply of manufactured product and not the raw material as such. As per para 6.15 of FTP, an EOU can remove unused inputs/raw material as such on payment of applicable duties. Since the raw material is non-excisable, I think no duty i.e. excise duty(since they are locally procured) is required to be paid on their removal as such in the DTA.
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Manoj Malpani
(Expert)
23 November 2011
Rakshit your understanding is correct. In case you have purchased non-excisable goods then there is no need to take any permission from the Jurisdictional Central Excise Authorities. However please ensure that all the related documents are kept in records to justify that the goods are non-excisable.
The permission is applicable for the goods which are procured under Notification 22/2003-CE or 52/2003-Cus. The non excisable goods are not procured under these notifications. Thereore there is no requirement for permission.
In case you are removing any duty free goods then you will have to take the permission from the authorities with whom the B-17 Bond is executed i.e. AC / DC of Central Excise.
The permission is applicable for the goods which are procured under Notification 22/2003-CE or 52/2003-Cus. The non excisable goods are not procured under these notifications. Thereore there is no requirement for permission.
In case you are removing any duty free goods then you will have to take the permission from the authorities with whom the B-17 Bond is executed i.e. AC / DC of Central Excise.
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23 November 2011
Dear Sir,Thanks for ur reply. It was very helpful. In case you can help me with any circular or notification which confirms the above view, that will be more helpful.
Manoj Malpani
(Expert)
24 November 2011
In my knowledge there are no circular for this. Please note that you will not get circular for every issue otherwise professional like us will loose the importance.. One should read the notifications and should understand the logic behond bringing out such regulation...
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