7.
Dear Shri. Kishan Barai Ji,
If you see the main query, it was a subseqauent demand of interest on the duties paid for exit from EOU Scheme which was granted final exit or De-bonding.
In terms of the provisions cited by me in the previous reply, on the occassion of exit from EOU scheme, the unit has to follow the procedure and guidelines provided therein which is subject to the unit achieving the positive NFE condition. If it is other wise the question of granting exit from the scheme does not arise.
Further, even if you see the provisions of cenvat credit Rules, if you clear the inputs/CG as such , you are required to pay the amount equal to the credit taken since in this case duty already paid.
Even in the other situation also with respect to EOU, if an EOU is unable to utilize the materials for the intended purposes ( for use in the mfr. of goods meant for export in this case), then the unit is under obligation to clear the goods on payment of duties which were not paid at the time of duty free procurement ( import or local). Similarly in case of clearance of Capital Goods by an EOU also, it was provided in the Notification that the unit should pay the duty on the depreciated value .
In any of the provisions, payment of interest is not mandated and in the similar way on Exit from EOU also there is no requirement to pay interest.
Coming to the view expressed by Shri. Kasturi Sethi Ji that interest is payable for misuse/enjoying the exemption, I respectfully submit that in the subject query, it is not by any stretch of imagination it is treated as mis-use of exemption since the FTP provides for such a facility for exit from the scheme on payment of duties on the stock of materials, wip and Finished goods and no interest payment is provided there in.
Hope the above inputs give the required clarity on the issue.
Best Regards
Suryanarayana