CST load on excise portion under EPCG.

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This query is : Resolved

anand (Querist)

25 March 2011 we sold a machine to one of our customer under epcg scheme & raise the bill as
Base Amount 100+Excise 10.3%=110.3+2%CST=112.50-Excise10.3=Rs-112.3(Net bill).
Where as customer is telling that since Excise is not applicable there for invoice should be Base price+CST.our view is that since this is not a Zero duty product we got the reimbursement from DGFT only for excise duty hence our billing is correct.
Kindly help me whether our point is correct our we have to charge CST only on base price.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

26 March 2011 The scheme allows import of capital goods for pre production, production and post production (including CKD/SKD thereof as well as computer software systems) at 5% Customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme to be fulfilled over a period of 8 years reckoned from the date of issuance of licence.
However, in respect of EPCG licences with a CIF value of Rs.100 crore or more, the same export obligation shall be required to be fulfilled over a period of 12 years. The capital goods shall include spares, jigs, fixtures, dies and moulds. EPCG licence may also be issued for import of components of such capital goods required for assembly or manufac-
turer of capital goods by the licence holder. Second hand capital goods upto 10 years old may also be imported under the EPCG scheme.

supply from DTA to EPU IS Exemption from payment of Central Excise Duty on all goods as per entitlement under Paragraph 6.2 of the FOREIGN TRADE Policy.

There is provision in ftp that Reimbursement of Central Sales Tax will by dta to EOU unit only.

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