TaxTMI 
TaxTMI 
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
Payment of duty on imports
09 Jun 2009 
2 Replies 
2026 Views Asked by
Duty-free import eligibility: non-approved capital goods may attract duty unless procedural compliance or post-facto LOI amendment is secured.
Where an EOU imported capital goods not approved by the Development Commissioner, duty-free entitlement depends on compliance with import procedures including invoice approval by the Development Commissioner, procurement/import certificate, bill of entry endorsements at warehousing, and sufficient B-17 bond balance; if no show-cause notice exists a post-facto LOI amendment may be possible. Remedies vary by fact: consumables used in exports may qualify for duty drawback on exportation; domestic sale allows claiming Cenvat credit for CVD paid to meet home-consumption duties. (AI Summary)
Where an EOU imported capital goods not approved by the Development Commissioner, duty-free entitlement depends on compliance with import procedures including invoice approval by the Development Commissioner, procurement/import certificate, bill of entry endorsements at warehousing, and sufficient B-17 bond balance; if no show-cause notice exists a post-facto LOI amendment may be possible. Remedies vary by fact: consumables used in exports may qualify for duty drawback on exportation; domestic sale allows claiming Cenvat credit for CVD paid to meet home-consumption duties. (AI Summary)