Some important points for payment of duties at the time of exit form EOU Scheme:

2009 -TMI - 33513 - CESTAT BANGLORE

In respect of in-process goods, there is no authority for demanding duty. As per Para 6.18 of the Foreign Trade Policy 2004-09, an EOU may opt out of the scheme with the approval of the Development Commissioner subject to the payment of Excise Duty. In the policy, only imported and indigenous capital goods, raw materials, components, consumables, spares and finished goods in stock are mentioned. There is no mention about the in-process goods. In the absence of the mention of the in-process goods in the policy, there is no authority for demanding duty on the in-process goods. Hence, we set aside the demand of duty on the in-process goods.

As regards the value of the imported goods at the time of de-bonding, de-bonding of goods may be allowed on payment of duty on the value at the time of import and the rate of duties in force at the time of clearance. Since the value at the time of import has been adopted, the dollar rate adopted at the time of import is correct.

 

For full text of judgment - visit 2009 -TMI - 33513 - CESTAT BANGLORE

 

 

 

Duty on exit from EOU scheme: stock items attract duty; in-process goods not leviable; import value governs valuation. Duty at exit from the EOU scheme is payable on imported and indigenous capital goods, raw materials, components, consumables, spares and finished goods in stock; the Foreign Trade Policy does not authorize duty on goods in process, so such demands are not sustainable. For de-bonding, duty may be computed on the value at time of import using the then-adopted dollar rate while applying the rate of duties in force at clearance.