DTA clearance by a 100% EOU attracts customs duty equal to import duty on similar cut flowers.

Clearance of cut flowers by a 100% Export Oriented Unit into the Domestic Tariff Area was treated as attracting customs duty equal to the duty payable on import of similar goods. The note records that the Tribunal applied an earlier ratio on DTA clearances by a 100% EOU, and held that the contrary view in the impugned order could not stand. On that basis, the liability to customs duty on DTA clearance of cut flowers was affirmed and the Revenue succeeded.

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Issues: Whether clearance of cut flowers by a 100% Export Oriented Unit into the Domestic Tariff Area attracted customs duty equal to the duty chargeable on import.

Analysis: The product cleared by the unit fell under Chapter Heading 0603.10 of the Customs Tariff Act, 1985. A prior Tribunal decision had already considered the effect of DTA clearance by a 100% EOU and had held that such clearances would attract customs duty in an amount equal to the customs duty chargeable on import of similar cut flowers. That ratio was applied to the present facts, and the contrary view taken in the impugned order was not sustained.

Conclusion: DTA clearance of cut flowers by a 100% EOU was held liable to customs duty equivalent to the import duty. The impugned order was set aside and the Revenue succeeded.

Final Conclusion: The liability of a 100% EOU to customs duty on DTA clearance of cut flowers was affirmed, resulting in relief to the Revenue.

Ratio Decidendi: DTA clearances by a 100% Export Oriented Unit are chargeable to customs duty equal to the duty payable on import of the same goods.

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