Customs Duty Exemption

[Guest]

A company undertakes a contract of an EOU unit for procurement and installation of a machinery. Whether it can procure such capital good with duty exemption. If yes, what is the procedure involved ??

[Mukesh Kumar]

There is no such provision.

AI Summary

Duty exemption for procurement of capital goods: contractors to EOU units cannot avail such exemption under existing provisions. The operative position is that no statutory or regulatory provision permits a contracting company to procure capital goods for an Export Oriented Unit with customs duty exemption in the contractor's name, and no procedure exists to enable a contractor to avail such exemption.