Interest on Raw Materials stock at the time of 100% EOU Exit

[SNEHAL SHAH]

Dear sir ,

We are manufacturing of Pharma product and recently ( before 6 Month ) , we got final Exit order from SEEPZ .

We have already paid duty amount on Raw Materials stock at the time of EOU exit with relevant Bill of entry assessed by Jurisdiction range officer Central Excise.

We have received Interest amount demanding letter from SEEPZ, on duty amount paid on these raw materials stock.

We have already used this input stock for production of FG and paid duty amount at the time of removal.

Can unit have to pay Interest amount on Raw materials stock ? Any provision please share .

Please give valuable feedback on this .

Regards,

SNEHAL SHAH

AI Summary

Is Interest Required on Raw Materials Duty After Exiting 100% EOU? Debate Highlights Differing Views A discussion on a forum revolves around whether interest needs to be paid on raw materials stock upon exiting a 100% Export Oriented Unit (EOU). The initial query was about receiving a demand for interest on duty paid for raw materials after exiting the EOU scheme. Some participants, like Kasturi Sethi, argue that interest is payable due to the exemption enjoyed. However, Suryanarayana Sathineni counters this, stating there is no requirement for interest payment upon EOU exit as per existing provisions, emphasizing compliance with duty payments but not interest. The discussion concludes with gratitude for the detailed clarification provided.