TaxTMI 
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TaxTMI 
Rejection of goods sent - without payment of duties
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....ejection of goods sent - without payment of duties<br> Query (Issue) Started By: - Govinda Raju Dated:- 11-2-2010 Last Reply Date:- 7-6-2014 Central Excise<br>Got 4 Replies<br>Central Excise<br>We are an 100% eou unit, kindly let me know the rejection can be sent back to origianal supplier, with out payment of duties, if yes kindly let know the notification no/circluar no. as in the FTP it tells ....
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....that rejects can be sold in dta by paying appropriate duties. Reply By Rama Krishana: The Reply: Supplies for DTA unit to EOU is treated as deemed export and allowed to be removed without payment of duty. In this case, DTA unit enjoys certain benefits. If EOU unit sent back to the rejected material to the DTA unit without payment of any duty, it may result into an anomaly in which no duty is paid....
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.... at the time of supply from DTA to EOU and no duty is paid at the time of rejection sent back from EOU to DTA [You may note that rejection may be sent back to original supplier or some other person]. Therefore, it may be necessary that while sent back the rejection to the DTA unit EOU needs to pay appropriate duty - refer to para 6.8(d) with 6.8(a) Reply By Anish Jain: The Reply: I am not agree wi....
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....th Mr.Rama Krishana. In my opinion para 6.8(d) covers those cases in which final product is rejected. In your case material procured has been rejected & this situatio is covered under para 6.17 (c. which covers replacement/rejection/return of imported & indegineous goods.But the procedure has not been prescribed here. in my opinion after getting permission from concerned AC/DC you can send mat....
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....erial on payment of duty or without payment of duty under bond. As you have already executed a bond B-17 with department & duty is already debited under that bond. in my opinion there is no need to furnish other bond but you can sent material without payemt of duty and get a letter from excise authority of your supplier that material has been received back. on the basis of this certificate you ar....
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....e entitle to credit the bond with duty amout involved in rejection. kindly refer rule 20 of central excise rules, 2002 Reply By Rama Krishana: The Reply: Thanks for corrected me Mr. Anish. I have considered the issue and rejection is permanent in nature. But, where the issue is of replacement / repair of goods procured from the DTA unit, obviously not duty is required to be paid either by the EOU....
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.... unit and / or by the DTA unit. Para 6.17 of the Foreign Trade Policy is application in such case. Reply By Susant Mohanty: The Reply: Can a foreign supplier take back the goods which are supplied to SEZ and ultimately rejected. if yes then what is the procedure. Further can an authorized agent of the foreign supplier in India can take back the rejected goods on behalf of the foreign supplier.<br....
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