Supply materials against epcglicense & invalidationletter

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VIJAYAKUMAR D (Querist)
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01 August 2015 We have supplied the materials to our 100% EOU customer mentioning Excise Duty NIL in our invoices against EPCG License and Invalidation letter

Kindly let me know the Central excise notification number for this clearance.

Thanks in advance.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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05 August 2015 refer to para 7.03 (c) Foreign Trade Policy 2015-2020

(i) Exemption, in case of Invalidation Letter

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VIJAYAKUMAR D

VIJAYAKUMAR D (Querist)
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06 August 2015 Dear Sir,

Thanks for your information.

Kindly let me know the Central excise exemption notification number for this clearance.

Thanks in advance

VIJAYAKUMAR D

VIJAYAKUMAR D (Querist)
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06 August 2015 Dear Sir,

Thanks for your information.

Kindly let me know the Central excise exemption notification number for this clearance.

Thanks in advance

VIJAYAKUMAR D

VIJAYAKUMAR D (Querist)
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06 August 2015 Dear Sir,

Thanks for your information.

Kindly let me know the Central excise exemption notification number for this clearance.

Thanks in advance

Arun Kumar Singh

Arun Kumar Singh (Expert)
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15 September 2015 100% EOU procure the indegenious goods without payment of excise duty under rule 20 of central excise rule 2002.

VIJAYAKUMAR D

VIJAYAKUMAR D (Querist)
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30 September 2015 sir, thanks for ur information.. for this clearance kindly provide me the central excise notification number.. kindly do the needful..

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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30 September 2015 you can read the cbec Notification No. 136/94-C.E. dated 10-11-1994.

VIJAYAKUMAR D

VIJAYAKUMAR D (Querist)
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30 September 2015 Dear Sir,
We cleared the goods against invalidation letter, we have mentioned in our invoice “NIL” excise duty as a zero..
For this any central excise notification number is there.. Please inform us..
Kindly do the needful..

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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30 September 2015 Dear Author,

this is already mentioned in FTP as per para 7.03 .

the ftp is written by IAS officer.(DGFT)

it seems that you are wasting ur time...
kindly show the para 7.03(c) ftp 2015-2020

Regards,

VIJAYAKUMAR D

VIJAYAKUMAR D (Querist)
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30 September 2015 dear sir, thanks for ur valuable time spending on our issue.. kindly note that we have explained the same to our central excise dpt..but after that also they are asking us ce notification number.. this is the reason we are requesting the ce notification number for our goods clearance.. kindly do the needful..

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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30 September 2015 Dear All,
supply against the Material through the invalidation letter of EPCG is exempt as per procedure in Hand Book of Policy Procedures 2015-2020 para 7.03(c).

Regards,

VIJAYAKUMAR D

VIJAYAKUMAR D (Querist)
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30 September 2015 dear sir, thank u..

VIJAYAKUMAR D

VIJAYAKUMAR D (Querist)
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21 March 2016 dear Sir, as per your advice we have given the letter with FTP 2015-2020 para 7.03c. now for this subject again central excise supertindent issued the show cause notice for not providing the CE notification for the goods clearance aganist epcg and invalidation letter. kindly advice us how to resolve this issue.. kindly do the needful.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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26 July 2025 This is a classic issue many face when clearing goods against an EPCG license or invalidation letter, especially regarding **Central Excise exemption** and the corresponding **notification**.

Let me help you with the clarity and references you need.

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## 🚩 Issue Summary:

* You supplied goods to your 100% EOU customer.
* Your invoices show **Excise Duty NIL** against EPCG license & invalidation letter.
* The Central Excise department is demanding the **specific Central Excise notification number** that exempts such clearance.
* You referred them to **Foreign Trade Policy (FTP) 2015-2020, para 7.03(c)** but they want a CE notification.

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## ✅ Relevant Legal Position and Notifications:

### 1. **Foreign Trade Policy (FTP) 2015-2020 – Para 7.03(c):**

* It clearly provides exemption to **100% EOUs** from payment of excise duty on procurement of indigenous goods under EPCG scheme and invalidation letter.
* However, **FTP is a policy**, not a law or notification directly enforceable by CE authorities.

---

### 2. **Central Excise Notification for exemption:**

The **main Central Excise exemption** that applies to supply of goods against EPCG/invalidations for EOUs is:

### **Central Excise Notification No. 136/94-C.E. dated 10-11-1994**

(as amended from time to time)

* This notification exempts excise duty on goods supplied to EOUs subject to conditions.
* You can cite this notification to your CE department.

---

### 3. **Central Excise Rule 20 of Central Excise Rules, 2002:**

* It allows 100% EOUs to procure indigenous goods **without payment of excise duty**, against specific authorization.
* This rule, along with Notification 136/94, forms the basis of exemption.

---

### 4. **Handbook of Procedures (HBP), Foreign Trade Policy 2015-2020, Para 7.03(c):**

* The HBP reiterates that procurement under EPCG and invalidation letter is exempted from excise duty.
* It also guides the procedure for claiming exemption.

---

## 🔄 How to respond to the CE department’s show cause notice:

### Step 1: Provide copies of:

* **FTP 2015-2020, Para 7.03(c)** — Policy reference.
* **Notification 136/94-CE dated 10-11-1994** — Statutory exemption.
* **Central Excise Rule 20(1)(b)** — For clearance without payment of excise duty to EOUs.

### Step 2: Explain:

* EPCG license and invalidation letter are issued by DGFT authorizing exemption.
* Supply to 100% EOU under these letters is exempt under Notification 136/94-CE read with Rule 20.
* Your invoice mentions “Excise Duty NIL” as per above.

### Step 3: If possible, seek a **personal hearing** with CE department to explain these provisions.

### Step 4: If issue persists, consider approaching:

* Commissioner (Appeals) of Central Excise.
* Or get legal advice for filing appeal.

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## 📌 Summary of references to quote:

| Reference | Description |
| ------------------------------------------- | ----------------------------------------------- |
| **Notification 136/94-CE dated 10-11-1994** | Exemption of Excise duty to EOUs on procurement |
| **Rule 20 of Central Excise Rules, 2002** | Procedure for clearance to EOUs without duty |
| **FTP 2015-2020 Para 7.03(c)** | Policy on exemption under EPCG/Invalidation |

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If you want, I can help you draft a **reply to the show cause notice** citing these references with a cover letter.

Would you like me to prepare that for you?

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