Sale of machinery imported under epcg

This query is : Resolved

Davindar Singh (Querist)
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13 March 2012 Dear Sir,

Kindly guide, whether machinery imported under EPCG (3% duty scheme) can be sold after fulfillment of export obligation but before completion of EO period.

In above instance machinery was imported under EPCG and its obligation was fulfilled within 4 years and then it was sold without payment of any duty.

NILESHKUMAR

NILESHKUMAR (Expert)
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14 March 2012 Your query is half hearted. Please note that whenever you raise a query to an exppert, provide all the details relavant to your case other wise it would not be possible to guide u properly. However based on the information given by you it seems you intend to sell EPCG machinery.

As informed you have completed EO. Just completion of EO is not enough. You have to obtain EODC from the concerned Lisencing Authority who has granted you this EPCG Authorisation. This fact is not clear from your query.

Before selling EPCG machinery you have to obtain Export Obligation Discharge Certificate otherwise it may lead vilation of EPCG Notification and FTP provisions under which you RLA has issued lisence to you.

You have to inform to Customs port of Registration for EODC certificate, cancell EPCG Bond submitted to Customs. This are the various points required to be taken into consideration if you want to sleep happy . Mere fulfillment of EO is not enough, submitt all export shipping bills , BRCs attested by Banks.
If this is not possible get a certificate from CA confirming export towards this lisence has been fulfiled and inform to RLA by giving an intimation in writing as well as also inform local Central Excise Excise Authority , as this will also effect your sales account. At the time of Audit of Central Excise records they may ask you the details etc in this regards,
Hope this is clear.

Thanks
Nileshkumar
B.Com., LLM, MBA(Fin), CWA
Consultants and Advocates
Central Excise, Customs, Servcie Tax, FEMA, Foregn Trade Policy

Davindar Singh

Davindar Singh (Querist)
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14 March 2012 Dear Nilesh Sir,

Thank You very much !!!!. Your detailed reply resolved my query.