Duty on yarn waste

[deepak kalambate]

We are 100% EOU and imported cotton yarn without payment of duty as notfn no. 52/2003 Cus. During the manufacturing process, yarn waste (ch 5202 1000)  is generated and we have cleared the same into DTA without payment of duty claiming exemption of notification no.23/2003 CE sr.no.15.

Now my question is..

1. Duty is applicable on this?if yes what the rate?

2. Can department ask for duty on assessable value as per bill of entry of cotton yarn contained in the yarn waste?

 

Pl advise.

[RAMESH PRAJAPATI]

Dear Mr Deepak,

If waste generated during manufcaturing process is within the limit as specified in the notifications no. 52/2003 Cus you can claim benefit of Ntfn. NO. 23/2003 CE,.Otherwise, you will have to pay duty on Assessable Value declared on Bill of Entry at the time of import and at the prevailing rate of customs duty on the date of clearance after obtaining permission from jurisdictional deputy commissioner of excise / customs.

Thanks

Ramesh

AI Summary

Exemption for manufacturing waste may apply to imported yarn waste for EOUs; otherwise duty assessed on import assessable value upon clearance.
Duty on yarn waste generated by a 100% EOU is exempt if waste remains within limits prescribed in the import notification and exemption notification; if limits are exceeded, duty is payable on the assessable value declared in the bill of entry for the imported yarn at the prevailing customs rate on the date of clearance, after obtaining permission from the jurisdictional deputy commissioner of customs/excise.