Eou Exit and duty on materials from availabe CENVAT credit.

[Asked by Guest]

Dear sir,

We have recently exit from EOU scheme, while exit we paid duty on RM/WIP and stocks from available CENVAT/ST credit for the goods imported without payment of duty under PC/CT3.

We have received query saying that the CENVAT credit can not utilize while exit from EOU, and while calculating duty liability of imported materials, can any body suggest is there is specific noti or circular in Customs or CE rules 1944 which clearly says whether the above transaction is allowed or dis allowed.

thanks

Mitesh

AI Summary

Use of Cenvat credit limited to authorised EOU liabilities on exit; other exit duties must be paid from PLA.
Duties on stocks (RM, WIP, FG) become payable on exit from the EOU scheme. Cenvat credit may be used only for authorised purposes - payment of duty on inputs/capital goods cleared as such, payment of duty on DTA clearances to the extent of Cenvat and cesses, and other expressly permitted uses - while any exit liabilities not covered by those authorised uses must be paid in cash through the Personal Ledger Account (PLA).