Supply form 100% EOU to DTA - If cleared with permission pay duty as customs duty under proviso to section 3(1) and if created without permission, pay normal excise duty under section 3(1)

In a recent and important decision Apex Court has held that:

"When the goods are cleared with the permission of the Development Commissioner, then only proviso to section 3(1) of the CE Act, would be applicable".

"When there is a removal to DTA without permission of the competent authority, duty is leviable under main section 3 of the CE Act, 1944"

For full text of judgment visit:

COMMISSIONER OF CENTRAL EXCISE Versus M/S NCC BLUE WATER PRODUCTS LTD. [2010 -TMI - 77633 - Supreme Court of India]

And Section 3 of the Central Excise Tariff Act, 1944 (as amended)