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

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..... 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 the instructions issued vide F.No. 305/107/93-FTT dated 31....

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....om 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 material. 3. In this regard the decision of the Supreme Court on....