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

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.