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

AI Summary

CRA Challenges Concessional Duty on PTFE Nozzles Exceeding FOB Value Limit; Unit Argues Product Similarity Across Headings. An EOU unit producing PTFE products, such as pipes, valves, and nozzles, procures PTFE resin duty-free. The unit's DTA sales are below 50%, but PTFE nozzles exceed 90% of the FOB value exported last year and are mostly cleared in the DTA at a concessional duty rate of 50% of BCD. The CRA objects to this concessional rate for nozzles, arguing they exceed the FOB value limit. The unit contends that nozzles, valves, and pipes are identical PTFE products, despite different chapter headings. A response requests clarification of the query for further assistance.