EOUs/ EPZ Units - Removal of scrap for conversion into ingot cannot be done without payment of duty

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....Removal of scrap for recycling and conversion - Reg. I am directed to invite reference to the circular letter of even No. dated 27th October, 1994 on the above mentioned subject, wherein it was clarified that scrap is a semi-finished item and the facility of sub-contracting by 100% EOU / EPZ Units for recycling of scrap into ingots outside such units in the DTA  can be allowed in terms of ....

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....ty. The scrap, therefore, can not be taken out duty free from the EOU, as such will have to be removed on payment of appropriate excise duty in terms of Central Excise Not. No. 2/95 dated 4.1.1995. However, the ingots, after conversion, can be brought back into the EOU without payment of duty in terms of Not. 1/95-CE dated 4.1.1995 on a CT- 3 certificate for further use in the units as raw materia....