supply of material from the own DTA unit to our own 100% EOU

[Hariharan Sundaram]

Sir, we are 100% EOU engaged in processing and export of polished granite slabs. We are also having our own quarry from where we are excavating rough blocks which is duly permitted by the State Government Authorities. The constitution of the 100% eou and quarry and one and the same (Same PAN and same partners). We are selling rough blocks from quarry to third parties. What is the procedure for clearing the rough blocks to our 100% EOU and kindly advise me on the documents to be used for such clearances?

[Rajagopalan Ranganathan]

Sir,

Rough blocks of Granite will fall under sub-heading No.2516 11 00 of the first schedule of Central Excise Tariff Act, 1985. This sub-heading attracts 'Nil' rate of duty. Therefore you can use commercial invoices to remove the rough blocks of granite to you EOU unit. Since the rate of duty is nil you need not follow any formalities under Central Excise Act, 1944 and rules made thereunder.

[Hariharan Sundaram]

Thank you very much for your prompt reply

AI Summary

Nil-rate classification for rough granite blocks permits transfers using commercial invoices without central excise formalities.
Rough granite blocks fall under sub heading 25161100 attracting a nil rate of duty; therefore intra unit transfers from the quarry to the 100% EOU can be documented using commercial invoices and do not require formalities under the Central Excise Act and related rules.