Payment of duty on imports

[SAPTHARISHI IYER]

As an EOU, LOP and LA/LUT has been executed. However due to oversight certain capital goods which are other wise eligble for duty free import remained to be included in the list approved by the Development Commissioner. These goods have been imported duty free. Audit has now taken an objection that such goods which are not approved by DC are not eligibe for duty free imports. Is duty to be paid on such imports? Saptharishi

AI Summary

EOU Faces Audit Concerns Over Unapproved Duty-Free Imports; Considers Post-Facto Amendments and Duty Drawback Options An entity operating as an Export Oriented Unit (EOU) executed necessary agreements but failed to include certain capital goods in the approved list for duty-free import. An audit raised concerns about these unapproved imports. Respondents advised checking if proper procedures were followed, such as obtaining necessary approvals and certificates. Suggestions included seeking post-facto amendments if no Show Cause Notice (SCN) was issued, considering duty drawback provisions for consumables used in exports, and utilizing CVD as CENVAT credit for domestic sales. The entity needs to assess the situation based on these factors to determine the appropriate course of action.