EOU clearance of scrap in DTA

[Nash Industries I Pvt Ltd]

As per DGFT TN dated 30.06.2017 read with Customs Notification 59/2017, the EOU needs to pay back the customs duty foregone on DTA clearances. The exemption allowed under 52/2003 is withdrawn in Notification 59/2017.

Whether the EOU needs to pay the customs duty on Transaction Value of clearance of scrap or they need to repay the duty foregone proportionately.

Secondly, when the customs duty at the full rate is payable on the DTA clearances, whats the need for fixing the Norms. The Norms has lost its sanctity.

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Regards

S.Ramaswamy

AI Summary

Reversal of customs duty on EOU DTA scrap requires repayment unless disposal falls within approved SION or norms.
EOU DTA disposals of finished goods, rejects, waste or scrap require reversal of customs duty exemptions availed on inputs unless the disposal falls within prevailing SION norms or norms fixed by the Norms Committee; FTP 2015-20 para 6.08(a)(v) ties the duty reversal to SION or approved norms, and Customs Notification 59/2017 and related DGFT/IGCRD provisions govern application of Notification 52/2003 and repayment obligations.