Debonding of EOU/ EHTP /STP units

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....here EOUs desiring to debond and exit out of the EOU Scheme, have been denied permission by the jurisdictional Customs./Central Excise Officers simply on the ground that some show cause notices or demands are pending against the unit. 2. The matter has been examined by the Board. The procedure for debonding is that the unit first approaches the Development Commissioner for 'in-principle' debondi....

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....ns that if an EOU is allowed to debond even when show cause notices are pending against it, the unit may dispose of its land, building, capital goods etc. after its conversion to a DTA unit, and these would not then be available to the Department later on for attachment and recovery of dues. Though these apprehensions are not without basis, it is felt that the EOU could be allowed to debond even i....

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.... materials, non-duty paid capital goods and finished manufactured goods, is discharged before the unit is allowed to debond. 7. Therefore, it is reiterated that an EOU unit should not be denied permission to debond merely because some show cause notice or confirmed dues is pending against the unit. The Commissioners should, therefore, take an overall view of the matter and after taking adequate ....