Promotion Council for EOUs & SEZ Units
of Commerce and Industry, Govt. of India)
Bhikaiji Cama Bhawan, Bhikaiji Cama Place, New Delhi-110066
Tel : 011-26167042/ 26165805/26166185 Fax : 011-26165538
Email : email@example.com
CIRCULAR NO.30 DATED 7.1.04
:Applicability of duties on DTA sale by EOUs, Circular No.
01/2004-Cus dated 5-1-2004 and reporting in the Financial
Express on 7-1-2004
Express today has reported that all sale by the 100% EOUs
into DTA shall attract full import duty. This has created
a panic situation and anxiety among 100% EOUs. I have received
a number of telephone calls from 100% EOUs since morning.
This has created the impression as if the facility of sale
in DTA @50% of duty to the extent of 50% of the FOB value
of exports and the facility of selling in the DTA on payment
of excise duty, if the raw material is indigenously procured,
has been withdrawn.
this context I would like to clarify that the facility of
sale in DTA @50% of duty to the extent of 50% of the FOB
value of exports, as illustrated in the Central Excise notification
No. 23/2003 dated 31-3-2003, has not been discontinued in
any manner. Similarly the facility of sale in DTA on payment
of excise duty or 30% of the customs duty as notified and
illustrated vide Notification No. 23/2003-Central Excise
dated 31-3-2003 has not been withdrawn or altered. Notification
No. 23/2003-Central Excise dated 31-3-2003 has not been
withdrawn or altered in any way.
confusion probably has been created because of Customs Circular
No. 01/2004-Cus dated 5-1-2004 issued by the Department
of Revenue. Basically this circular has been issued in the
context of the decision of larger bench of CESTAT in the
case of M/s Himalaya International Ltd V/s Commissioner
of Central Excise, Chandigarh. This circular basically clarifies
that for sale in DTA by EOUs, the duties are chargeable
as per the proviso to Section 3 (1) of the Central Excise
Act, 1944. Duties are not chargeable under Section 3 (1)
of the Central Excise Act, 1944. The specific notification
for payment of duty is notification No. 23/2003-Central
Excise dated 31-3-2003 and this notification has not been
rescinded /altered in any way by this circular.
is for your information please.