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

Clarification Sought on Duty Structure for EOU Goods Entering DTA; Notification No. 23/2003-CE Referenced for Guidance A participant inquired about the correct duty structure for discharging liability when clearing goods from an Export Oriented Unit (EOU) into the Domestic Tariff Area (DTA) using imported inputs. The query included a detailed breakdown of applicable duties and cesses. One respondent suggested referring to Notification No. 23/2003-CE for guidance, while another noted that the duty structure depends on whether the sale falls under specific provisions of the Foreign Trade Policy 2009-2014. They argued that a third levy of cess on the total duty is debatable and likely not required.