PAYMENT OF DUTY & TAX FOR SCRAP QTY OVER DUTY FREE IMPORTED GOODS

[CHANDRU RAMACHANDRAN]

I wish to know the applicability of duties & taxes on scrap disposal from the production inputs imported under duty exemption scheme (EOU). As per my opinion, customs duty & IGST is payable on the overall value of scrap qty to be disposed in DTA. The percentage of duty payable is as per rate prevailing at the time of disposal of scrap. Please confirm if my opnion is correct.

AI Summary

Customs Duty and IGST Payable on Scrap from Duty Exemption Scheme When Sold Domestically; Clarifications Needed A discussion on the applicability of duties and taxes on scrap disposal from production inputs imported under a duty exemption scheme (EOU) highlights that customs duty and IGST are payable on the scrap's value when disposed of in the Domestic Tariff Area (DTA). It is confirmed that no duty is required if the scrap is destroyed after notification within the unit. The duty is based on the transaction value of the scrap sold in DTA if derived from exported goods, and on the value of imported goods if domestically cleared. Participants seek clarification on these points.