Sale of machinery imported under EPCG-Duty applicability

[Narendra Soni]

Dear Expert

We imported machinery under EPCG authorisation.

Export obligation had already fulfilled and EODC also granted by DGFT.

Bond had also cancelled from Customs.

Now we want to sell it. Can excise duty is applicable on it ??

AI Summary

Selling Machinery Post-EPCG: Pay Duties Equal to Import Benefits if No CENVAT Credit Taken, Typically After Three Years A user inquired about the applicability of excise duty on selling machinery imported under an EPCG authorization after fulfilling export obligations and receiving an EODC. An expert clarified that the machinery can be sold after a certain period, typically three years, unless sold to a group company. Another expert noted that all applicable duties must be paid upon sale. It was also explained that if CENVAT credit was not taken but forgone through EPCG, duties equivalent to the benefits enjoyed during import must be paid. The user emphasized that the machinery is being sold after use, seeking further clarification on duty impact.