Benefit of no duty import allowed when goods jointly imported by financing company and EOU

Last updated: 08 June 2023

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The CESTAT, Chennai has ruled that an Export Oriented Unit (EOU) and a financing company can jointly claim the benefit of duty-free imports for machinery. This decision overturns a previous demand for customs duty, recognising that the imported goods were indeed used by the EOU for manufacturing. The tribunal noted that while direct joint filing via the EDI system might be problematic, the principle of joint benefit remains valid, especially when the goods are put to use as intended.

Court :
CESTAT, Chennai

Brief :
The CESTAT, Chennai in the case of M/s. Same Deutz – Fahr India (P) Ltd. v. Commissioner of GST & Central Excise(Customs Appeal No.42175 of 2014, dated May 26, 2023) allowed the Export Oriented Unit (“EOU") and financing company jointly to enjoy the benefit of no duty imports when imported goods used by EOU.

Citation :
Customs Appeal No.42175 of 2014, dated May 26, 2023

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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