De-Bonding of 100% EOU

[SAKTHIVEL PONNUSWAMY]

Dear All,

We are in the process of De-bonding of our 100% EOU unit. On De-bonding is it required to pay duty for capital assets acquired, during the period under bonding, from DTA by paying Central Excise duty? Similarly on raw material stock which is purchased from DTA by paying applicable Excise Duty.

Regards,

SAKTHIVEL

AI Summary

De-bonding duty obligation requires payment on duty-free capital goods and raw materials, subject to accounting segregation.
De-bonding requires payment of excise duty on capital goods and raw materials obtained duty-free under bond; duty-paid assets and stock purchased from the domestic market are not liable for additional duty if segregated in accounts. Compliance with Board circular procedure and clear accounting segregation is necessary to establish correct treatment and to avoid penalties for non-performance of export obligations.