Excise duty examption for 100% eou on dta sales

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CA Mahesh (Querist)
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06 December 2012 Dear Sir,

My client is a 100% EOU. It procures Ram material from Foreign countries and It also procures form domestically for it s domestic sales (DTA). presently company is paying Excise duty on DTA Sales.

My doubt is whether excise duty is applicable on DTA sale by the EOU ?? Because there is a Circular No. 442/8/99-CX
dated 4/3/1999 which exempts form Excise duty . still this notification is valid ???
some people are telling that this circular has been amended by notification no.23/2003. but no where specified the same. Is it valid ???

Arbind Aggarwal

Arbind Aggarwal (Expert)
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06 December 2012 1. Excise duty is payable on clearance made to DTA - there should be no doubt on this. Refer Central Excise Act - Section 3 and Notification No. 23/2003.

2. Excise duty will be equal to customs duties leviable on such goods i.e. BCD, CVD, SAD etc

3. There is a concession of 50% on BCD on acheivement of NFE and under intimation/permission to/from the authorities.

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