EXIT FORM EOU

[Hasmukh Patel]

Dear ALL,

At the time of exit form EOU scheme, why EOU may pay full custom duty on the finished goods lying in stock ? Nomaly it is under section 3(1) of C.Ex Act2002. The wording is that 'o be sold any other palce in india'

If the finished goods is not sold by EOU then why EOU pay the duty under section 3(1) / dity as like imported goods in india.

I think the EOU may reverce the benefits take to manufacturing of final finished goods layin in the stock ata the time of exit of eou.

I want all your opinions.

AI Summary

Debate on EOUs Paying Full Customs Duty on Stock After Exiting Scheme; Section 3(1) Central Excise Act Discussed. A discussion on a forum addressed the issue of whether an Export Oriented Unit (EOU) should pay full customs duty on finished goods in stock upon exiting the EOU scheme. Participants debated the application of Section 3(1) of the Central Excise Act, 2002, and the Foreign Trade Policy (FTP) provisions. It was noted that EOUs lose benefits upon debonding and must pay duties on all stock, as per FTP guidelines. Some contributors referenced legal cases and suggested that EOUs might contest this requirement. The discussion also touched on procedural aspects and potential strategies for EOUs to mitigate duty payments.