Benefit of this notification not to be denied to units using both imported and indigenous raw material so long it is proved that inputs used in the Manufacture of goods sold in DTA or made from indigenous raw materials

Clarification on Excise Duty Exemption for 100% EOUs Using Mixed Raw Materials Under Notification No. 8/97-CE.

Circular No. 442/8/99-CX, dated 4/3/1999, addresses the applicability of Notification No. 8/97-CE, which exempts certain goods produced in 100% EOUs or FTZs from excise duty if made from indigenous raw materials. The circular clarifies that units using both imported and indigenous raw materials can still benefit from the notification if they prove that goods sold in the DTA are made solely from indigenous materials. Proper documentation and verification are required to ensure compliance. In cases of common inputs or products, benefits should be denied to prevent misuse. Pending cases should be resolved accordingly, and a previous circular is modified.