Supplying of goods to 100% EOU

[SHAHID HASHMI]

Can we supplly the Insulated cables from 100%EOU to Ultra Megapower Project, Mundra as sub-contractor on payment of Excise Duty and later on we want to claim the Terminal Excise Duty refund from DGFT. Secondly whether Domestic manufacturers are able to avail the benefit of Custom Duty Exemption under custom notification supplied to Ultra Mega Power project, when like goods are imported in India .

[Rama Krishana]

I think, both the proposition are possible. EOU can claim the benefit of deemed export benefit as well as domestic manufacturer can avail the exemption on manufactured goods supplied to ultra mega power project if the items are as per the PAC (project authority certificate)

AI Summary

Deemed export benefit: EOU supplies may pay excise and later claim terminal excise refund; domestic suppliers may seek customs exemption. The EOU may supply goods to the project on payment of excise and subsequently claim deemed export benefits including terminal excise refund; domestic manufacturers can obtain customs duty exemption for supplied goods if the items conform to the project authority certificate specifications.