Material cleared under EPCG

[SURYAKANT MITHBAVKAR]

We are manufacture of Pharmaceutical Machinery &  received order from customer wherein mentioned excise duty Nil against EPCG License .

Earlier we had cleared material under EPCG  Scheme but after charging excise duty .

Pl. give advise us  whether we can cleared material with Nil excise duty on basis of Invalidation Letter received for party or to charge excise duty for the same.

 

[SANTHANA KRISHNAN]

As a manufacturer, you get the permission (with the Epcg licence of your customer) from your Excise Range and clear without excise duty.

 

regards

jr

[Madhav Aphale]

There is no provision or notification for clearance of goods with out excise duty or Nil duty against Invalidated EPCG Lic . The procedure is paying Terminal excise duty and claiming TED refund either by Consigner or Consignee under Deem Export Benefit.

Regards,

Madhav Aphale

 

[YAGAY andSUN]

Goods would be removed on payment of duty and Terminal Excise Duty would be claimed as per the provision mentioned in the FTP read with HBP Vol.1.

AI Summary

EPCG licence validity determines whether goods may be cleared without excise duty or require duty payment and TED claim. Where an EPCG licence is valid and the manufacturer secures permission from the Excise Range, goods can be cleared without charging excise duty using the customer's EPCG licence. If the EPCG licence is invalidated, clearance without duty is not permitted; goods must be removed on payment of duty and Terminal Excise Duty may be claimed as a deem export refund under the FTP and HBP Vol.1 procedures.