100% Export Oriented Unit

[SNEHAL SHAH]

Sir,

We have Manufacturer of Excisable Product and We have totally 2 Units in DTA and 1 Unit at EOU .

Due to Space issue we are only checking and packing of this DTA material at EOU premises .

Finished Product attract Excise duty . We are dispatching this product as a export with proper documentation from DTA premises .

Is it any litigation issue arise in future . Plz suggest us .

Thanks and Regards,

SNEHAL SHAH

[VVFINDIA Taloja]

Dear Snehal,

EOU's are registered as bonded location. You should not carry out any other premises activities in EOU bonded premises unless specifically permitted. This will be violation of Rules and regulation of EOU. It does not matter that, the DTA Unit is a sister concern. But EOU has got the separate status and it will be treated as foreign territory. Requirement of earmarking of both entities are precisely mentioned in HBP V1 09-14 Para 6.2.8. Penalty may be imposed on violation of Rules and EOU license may not be renewed.

[Mahir S]

space issue problem is not a concern of the department.

[SNEHAL SHAH]

Thanks a lot both of you for reply ......

AI Summary

EOU bonded premises cannot be used for DTA activities; breaches may attract penalties and licence non-renewal. An EOU is a bonded premises and cannot be used for DTA activities such as checking and packing of DTA-manufactured excisable goods; doing so breaches earmarking and EOU regulations, may attract penalties and risk non-renewal of the EOU licence, and space constraints do not excuse non-compliance.