DUTY STRUCTURE OF DTA SALE BY EOU.(After considerring No.26 & 27/2015 & 27

[SANJAY SURYAWANSHI]

Sir,

Can u help me for above subject matter, i.e. Duty structure of EOU unit after considering Notification No. 26/2015 & 27/2015 Excise.

Regards,

Sanjay V.Suryawanshi.

Phoenix Innovative Healthcare Mfg.Pvt. Ltd. (100%EOU).

 

[B. Naga Rami Reddy]

Dear SanjayJi

After issue of the above two notifications, there would not be 2% and 1% education cess and SHE cess respectively while calculating final aggregate duties of Customs which is equivalent to the excise duty.

Duty Structure looks like this:

AV 100, BCD x%, CVD y% on (100+ BCD) and 2% ed cess and 1% SHE cess on (BCD + CVD) . No SAD of 4% if Sales tax/Vat paid. No final 2% Ed cess(26/2015-CE) and 1% SHE cess(27/2015-CE) . You may note that 2% and 1% cess payable on (BCD+CVD) as Sl. No.1A and 1B of Notfn 23/2003-CE omitted through Notfn 16/2015-CE. Hope you are convinced.

[SANJAY SURYAWANSHI]

Thanks Sir,

AI Summary

Education and SHE Cess Removed from EOU DTA Sales Duty Calculations as per Notifications 26/2015 and 27/2015. A query was raised regarding the duty structure for Domestic Tariff Area (DTA) sales by Export Oriented Units (EOUs) after considering Notifications No. 26/2015 and 27/2015. The response clarified that following these notifications, the 2% education cess and 1% Secondary and Higher Education (SHE) cess are no longer applicable when calculating the final aggregate duties of Customs equivalent to excise duty. The duty structure involves assessing the basic customs duty (BCD) and countervailing duty (CVD) without the additional cesses, provided sales tax or VAT is paid. The response aimed to clarify the changes and confirm the understanding of the duty calculations.