TaxTMI 
TaxTMI 
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.
DUTY CALCULATION FOR CLEARANCE OF SCRAP MATL IN DTA BY EOU
12 Aug 2021 
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Reverse proportionate customs duty required when EOU clears scrap into DTA, alongside applicable GST obligations.
EOU clearances of scrap into DTA require payment of applicable GST and reverse proportionate customs duty based on SION or DGFT norms. If scrap arises from exported goods complying with SION norms, initial import duty need not be repaid; if scrap arises from goods cleared domestically, the customs duty exemption claimed at import must be proportionately repaid, calculated with reference to the imported input's value and the duty rate applicable to that input rather than the scrap's transaction value. (AI Summary)
EOU clearances of scrap into DTA require payment of applicable GST and reverse proportionate customs duty based on SION or DGFT norms. If scrap arises from exported goods complying with SION norms, initial import duty need not be repaid; if scrap arises from goods cleared domestically, the customs duty exemption claimed at import must be proportionately repaid, calculated with reference to the imported input's value and the duty rate applicable to that input rather than the scrap's transaction value. (AI Summary)