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

Duty liability on finished goods at EOU exit requires payment of full duty under FTP de bonding rules.
De bonding under the FTP requires payment of duties on materials, capital goods, consumables, components, work in process and finished goods in stock as on the specified date; concessional DTA clearance rates are treated as available only to operational EOUs, so exit normally triggers reversal of EOU benefits and full duty liability unless FTP provisions are amended or relief is obtained through appeal or representation.