Customs duty on clearances of used Machinery from 100% UNIT TO DTA

[jagadesh kumar bhojanapalli Kumar]

Dear Sir,

We are having 100% EOU Unit. We would like to sell used imported machinery in DTA under VAT/CST billing on payment of applicable duties which is imported and procured under nil rate of duty against procurement certificate . Is it SAD (4% ) is applicable or not ?

Awaiting yr confirmation with authority to justify the customs officials .

Thanks & Regards,

jagadesh kumar

[KASTURI SETHI]

If VAT has been paid, SAD is exempted. Notification No.45/2005-CUSTOMS dated 16.5.2005 and Board's Circular No.44-Customs dated 30.12.2013 refer.

AI Summary

SAD exemption applies when VAT is paid on clearance of used imported machinery from EOU to DTA.
Payment of value added tax on DTA sale of used imported machinery from a 100% EOU removes liability for special additional duty; administrative references cited supporting the SAD exemption when VAT has been paid.