Excise duty applicability on sale of goods import under epcg

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Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2013 Dear Sir

Does Excise duty is applicable on sale of goods imported under Zero percent EPCG scheme? If any notification or circular is available in this regard please update.

Thnx

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

29 March 2013 In terms of para 5.6 of FTP, the EPCG Authorisation holder may source the capital goods from domestic sources instead of importing them. In this case, the supplier of capital goods will charge the excise duty at the time of supply of capital goods which is refundable either to the EPCG Authorisation holder or to the supplier. The EPCG authorisation holder can also take the CENVAT if he does not want to avail of the exemption. However, this provision of refund is beneficial to those EPCG Authorisation holder whose final products are exempt and cannot avail CENVAT.

must see:

dgft Policy Circular No. 16 (RE-2012/2009-14) Dated: 15th March, 2013

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2013 Sir
Many Thanks.

Specific Query is: Capital Goods imported under epcg license. EO fullfilled. Licence redeemed and EODC received.

Now, if we sale these capital goods does this sale attarct the excise duty . Do we need to charge the excise duty on sale of these capital goods.

Pls answer and if any notification/ circular is avialable please update.

Thanx

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