Eligibility of reimbursement of custom duty - 100% EOU

[nanda kumar]

Whether 100 % EOU is eligible to be reimbursed the customs duty element included in the input raw material cost but not directly paid by the said 100 % EOU.

[Ravi Chopra]

All is depend on the scheme and option being followed by the EOU. Technically an EOU is entitled to get the benefit of excise duty or customs duty paid on the material procured by the EOU even if such duty has not been paid by the EOU directly.

[Haridas Nair]

The goods are required to be imported directly to the EOU. Therefore, I don't think the CD element will be reimbursible when somebody else has paid the duty, unless the unit falls into granite quarrying, agriculture sector etc.

[RadheyShyam Mangal]

an eou can claim the reimbursement custom duty element included in the input in form of duty drawback on the basis of disclaimer certificate of DTA Supplier .

AI Summary

Reimbursement of customs duty: export oriented unit's eligibility depends on chosen scheme and direct import; duty drawback may apply. Eligibility for customs duty reimbursement for an export oriented unit depends on the scheme chosen and procurement method. A unit may be entitled to benefit for duty elements it did not directly pay, but reimbursement is generally limited to inputs imported directly to the unit; where a third party paid duty reimbursement may be unavailable, though duty drawback can be claimed based on a disclaimer certificate from the domestic supplier.