Concessional re ate of duty on e o u unit

[Amresh kumar]

We are a EOU unit and our products are mainly PTFE filed products and main raw material is PTFE Resin which we procure duty free.

We manufacturing PTFE pipes & tubes under CHS 39, PTFE VALVES under chs 85 and PTFE Nozzles under chapter 84.

Overall DTA sale is below 50%.

ONLY THE PTFE nozzles exceeds the 90% of the FOB VALUE Ex ported previous year and in factbthe PTFE Nozzles are very rarely exported and almost cleared in DTA, on paying concession rate of duty i.e. 50% of BCD but over all limit is below 50%.

Now the CRA ha is raised a objection that concessional duty will not be applicable on Nozzles ss it has been cleared more than the FOB value of last year and it will not include in 50% limit.

Our contention is that Nozzles and valves & types are identical goods with base material as PTFE resins and hence all are PTFE products and dupplie to large industries abroad and domestic market. Though as per requirements of customer no me culture and chapter heading is changed.

Please, your valuable opinion in the matter.

The matter relates to Central excise regim

Regards

Amresh Kumar

[YAGAY andSUN]

Please refine your query in one or two sentences so that we can revert.

AI Summary

Concessional duty eligibility questioned where a PTFE product's export concentration affects EOU DTA-limit calculation. Concessional duty applicability for an EOU producing PTFE-based goods is disputed because PTFE nozzles allegedly exceeded the prior year's FOB export threshold, and the revenue authority contends those nozzles should be ineligible for concession and excluded from the EOU's DTA-sale calculation. The unit argues that nozzles, valves and pipes share common raw material and commercial identity as PTFE products, so chapter-heading differences should not affect concession entitlement or DTA-limit computation.