Types of benefit availed to manufacturer sales to EOU Unit

[SURYAKANT MITHBAVKAR]

Kindly let us know what type of benefit (Rebate) avail to manufacturer under Goods sold to EOU unit.

Pl do the needful.

[YAGAY andSUN]

Exemption from Central Excise Duty in procurement of Capital Goods, raw materials, consumables spare etc. from the domestic market.Re-imbursement of CST paid on domestic purchases. Supplies from DTA to EOUs treated as deemed exports.Reimbursement of duty paid on furnace oil, procured from domestic oil companies to EOUs as per the rate of drawback notified by the Directorate General of Foreign Trade.Job work on behalf of domestic Tariff Area (DTA) unit into an EOUpermitted.

AI Summary

Exemption from Central Excise Duty for manufacturers supplying EOUs enables procurement relief and related reimbursements. Exemption from Central Excise Duty applies to manufacturers procuring capital goods, raw materials, consumables and spares from the domestic market for supplies to EOUs; reimbursements include CST paid on domestic purchases and duty on furnace oil as per notified drawback rates; supplies from the DTA to EOUs are treated as deemed exports and job work into an EOU for a DTA unit is permitted.