Discharging the liability

[Vijay Chitte]

Dear Sir, We are clrearing the goods into DTA from our EOU on payment of applciable duty as follows; Ass.Value 100.000 BCD5% 5.000 Total 105.000 CVD 14% 14.7 ECess on CVD2% 0.294 S&HECess on CVD1% 0.147 Customs ECess2% 0.40282 Customs Ecess1% 0.20141 If, We are using Imported inputs and sale the finished goods in DTA, then the above duty structure is right for discharging the duty or not?. Please confirm. Vijay chitte

[Surender Gupta]

Kindly refer to illustration refer to in the Notification NO. 23/2003-CE, DT. 31/03/2003.

[RadheyShyam Mangal]

the reply of the query depends whether thd dta sale is under para 6.8(a) or 6.8(h)of FTP 2009-2014. considering that u are selling goods under para 6.8(a), the bcd is levied at the rate of 50% other duties appers to be correct. However the department is insisting the payment of cess third time also on total duty as above computed. the matter is arguable and in my opinion the third time cess is not leviable.

AI Summary

Discharge of import duties and cesses on EOU-to-DTA clearance raises dispute over repeated cess liability.
Discharge of duties on EOU-to-DTA clearance focuses on sequential imposition of Basic Customs Duty, Countervailing Duty and multiple cesses calculated on duties; applicability depends on whether the sale falls under FTP para 6.8(a) or 6.8(h). An illustration in Notification No. 23/2003-CE is referenced, and while other duties appear to follow the computation shown, the department's demand for an additional (third) cess on total duty is contested and considered arguable, with an opinion that such third-time cess is not leviable.