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

AI Summary

Clarification: No Special Additional Duty on Used Imported Machinery Sold from EOU to DTA if VAT is Paid. A query was raised regarding the applicability of Special Additional Duty (SAD) on the sale of used imported machinery from a 100% Export Oriented Unit (EOU) to the Domestic Tariff Area (DTA) under VAT/CST billing. The machinery was initially imported under a nil duty rate. The response clarified that if VAT is paid, SAD is exempted, referencing Notification No. 45/2005-CUSTOMS and Board's Circular No. 44-Customs.