Legal provisions when manufacturing capacity of the product is increased then mentioned in LOP

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Legal provisions when manufacturing capacity of the product is increased then mentioned in LOP
Query (Issue) Started By: - Suvarna Kumar Dated:- 24-3-2010 Last Reply Date:- 30-3-2010 Central Excise
Got 2 Replies
Central Excise
Dear Sir , In our LOP mention 1 year manufactering capacity of the the 1 prouduct is 20000 sqm if our capacity is increased and we produce above 20000 sqm .if t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... here is Any legal problems ??? Reply By Rama Krishana: The Reply: There is no policy or scheme of the central government under FTP to prevent an EOU to enhance its installed capacity and generate more production. IF you see the condition application to EOU, monitoring of EOU units or provisions of penalties etc. you would not find any provision restricting an EOU to produce more and export more. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Yes, the performance of an EOU can not be less than the minimum prescribed by the FTP or LoP. But it it is exceeding and you are earning minimum NFE, you may go ahead. In addition, it is better always that you should intimate the fact of enhancement of your capacity to the DGFT office timely. Reply By R.S. Mangal: The Reply: I agree with the view expressed by RamaKrishnaji. However, to avoid probl .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... em from the Central Excise department while claiming exemption on procurement of duty free inputs for enhanced capacity, it always advisable to get the LOP modified from the office of Development Commissioner. The D.C. SEZ has delegated power to enhance the capacity of manufacture in LOP under para 6.32 (4) of HBP as under (4) "To permit capacity enhancement without any limit in case of de-license .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... d industries only; "
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X