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

Removal of cesses alters duty calculation for EOU DTA sales, affecting CVD, BCD treatment and SAD applicability.
Duty for DTA sales by EOUs is computed with assessable value plus Basic Customs Duty, with Countervailing Duty levied on the sum inclusive of Basic Customs Duty; education and SHE cesses previously charged on customs duties have been omitted, and Special Additional Duty is not payable when sales tax/VAT is paid.