DUTY PAYABLE ON REMOVAL OF CAPITAL GOODS FROM EOU UNIT

[RAMNIRANJAN KANDOI]

01) We recd. 1 Imported Machine under EPCG License . We have fulfilled our obligation .

We have given application for redemption application to DGFT but the same is not cleared so far .

What procedure should be done for removing of the machine .

02) We are having an EOU unit .We hv recd. Imported Machine without payment of any duty .

Now after two years of the receipt of the machine , we would like to remove the same

kindly guide about payment of duty

[RAMESH PRAJAPATI]

1) you will have to take "No Bond Certificate" / redemption from DGFT before disposal of CG. Please follow up with DGFT.

2) EOU you have pay back duty forgone on depriciated value as per EOU Notification No 52/2003-Cus

AI Summary

Duty on removal of capital goods requires DGFT redemption and payment of duty forgone on depreciated value. Redemption from DGFT or a No Bond Certificate must be obtained before disposing of capital goods imported under an EPCG licence; capital goods removed from an EOU require payment of duty forgone calculated on the depreciated value in accordance with the relevant EOU notification.