Hello
Can anyone let me know on the duty structure for the DTA sale from a EOU unit, where the unit has availed a advance DTA sale permission from the department. In such case will the EOU unit gets the benefit of 50% of BCD.
An notification regarding the same will be of more help
The unit is 100% EOU under the CSEZ and is situated in Bangalore / Karnataka
Thanks in Advance
Regards
Raghu
The duty will be charged as per section 3(ii) of the Central Excise Act.you will get the benefit of 50% exemption vide Notification No.23/2003-C.E dated 31.3.2003.
Thank you Mr. Prabhat Kumar
Thanks & Regards
K K Raghavendra
As per my discussion with the CSEZ AC, the interpretation of the Para 6.8 and the notification 23/2003 is correct and as a Advance DTA Sale we will not have the flexibility of the concessional duty.
His explanation is that
Regular DTA sale will have the concessional duty as per the 6.8 Para (a) of the Foreign Trade Policy. Its very clearly mentioned about the concessional duty payment. Where as in sub division (k) of para 6.8 of FTP which is for the Advance DTA Sale Permission, the duty part is salient and it does, hence it has to be treated as full duty.
Moreover the subdivision (k) is intentionally left out from the conditions of Central Excise Annexure which is a evident that the duty to be calculated at full. Though there have been lot of amendments to this notification, none of the amendments have incorporated the sub division (k) into the concessional duty part.
Pls provide us some inupts
Regards
Raghu
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