GOODS REJECTED BY DTA

[B Ravi]

WE ARE 100% EOU SUPPLYING GOODS TO DTA UNIT. UNDER FULL PAYMENT OF CUSTOMS DUTY. GOODS REJECTED BY DTA UNIT. UNDER WHICH RULE WE CAN TAKE BACK THIS GOODS. WHETHER CUSTOM DUTY PAID ON ORIGINAL CLEARANCE WILL GET REFUND. OR FRESH SUPPLY ATTRACTS CUSTOM DUTY AGAIN

[Rama Krishana]

In this situation, though rule 16 of the Central excise rules, 2002 may be applied but I would suggest that, you should store the rejected goods separately and intimate the department. On rejected goods, you would not get any refund of customs duty

AI Summary

Customs duty on rejected imports: no refund; store goods separately and notify the department for excise rule application. Goods supplied by an Export Oriented Unit to a DTA unit under full payment of customs duty that are rejected are to be stored separately and the department notified; customs duty paid on the original clearance is not refundable, and relevant Central Excise Rules may be applied for procedural handling though duty liability remains.