Circular No.ES/29 /2017-18 April 11, 2017
To: Members of the Council
Sub: Domestic Tariff Area (DTA) clearance of goods procured by EOUs/EHTP/STP units from indigenous sources – charging of Duty
CBEC has issued Circular No.13/2017-Cus dated 10.04.2017 on the above subject.
Vide Circular No.74/2001-Cus dated 04.12.200, it was clarified that in case raw materials/ capital goods etc., procured from indigenous sources by EOUs/EPZ/SEZ/EHTP/STP units are transferred/ sold back to DTA except for the purpose of replacement, the deemed export benefits already availed of against such goods shall be required to be refunded back and that the export benefits shall be deposited through TR in the designated bank. It was further clarified that the goods will be allowed to be cleared to DTA only on production of a certificate from the jurisdictional Development Commissioner to the effect that such deemed export benefits are paid back. In cases, where no deemed benefits were availed, a certificate to this effect from the jurisdictional Development Commissioner shall be produced. Only after production of such certificate, these raw materials/capital goods could be cleared on payment of appropriate central excise duty.
Further it was informed to the Board by the members of Trade about the difficulties being faced in getting the certificate from the Development Commissioner.
In view of the above, it is clarified that,
For more information, you may refer to the above Circular No.13/2017-Customs.
V. ANIL KUMAR