DUTY CALCULATION FOR CLEARANCE OF SCRAP MATL IN DTA BY EOU

[CHANDRU RAMACHANDRAN]

An EOU organization wanted to clear their scrap material in DTA on payment of applicable GST plus reversal of duties & taxes over the inputs of imports for which exemption was availed. I wish to know as to how to calculate the duty while clearing the scrap in DTA. Request any one who has sound knowledge on this may please reply.

AI Summary

Clarification Sought on Duty Calculation for EOUs Clearing Scrap in DTA: GST, SION, and Reversal of Exempted Duties An Export Oriented Unit (EOU) sought guidance on calculating duties for clearing scrap material in the Domestic Tariff Area (DTA), including GST and reversing duties on previously exempted imports. Responses highlighted that EOUs must pay applicable GST and reverse customs duties based on Standard Input Output Norms (SION) or DGFT norms. Clarifications were sought on whether duty calculations should be based on transaction value or original import duty rates. It was noted that if scrap results from exported goods, customs duty isn't required, but for domestically cleared goods, duty must be proportionate to initially exempted imports.