De-Bonding of 100% EOU

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..... De-Bonding of 100% EOU
Query (Issue) Started By: - SAKTHIVEL PONNUSWAMY Dated:- 23-12-2015 Last Reply Date:- 24-12-2015 Central Excise
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Central Excise
Dear All, We are in the process of De-bonding of our 100% EOU unit. On De-bonding is it required to pay duty for capital assets acquired, during the period under bonding, from DTA by paying Central Excise duty? Similarly o .....

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..... n raw material stock which is purchased from DTA by paying applicable Excise Duty. Regards, SAKTHIVEL Reply By KASTURI SETHI: The Reply: Procedure for de-bonding has been laid down in Board's circular No.8/04-Cus dated 28.1.04 as amended vide Circular No.55/04-Cus dated 14.10.2004. Duty involved on the capital goods and raw material has to be paid. Penalty is likely to be imposed for non-p .....

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..... erformance of export obligation. Reply By SAKTHIVEL PONNUSWAMY: The Reply: Dear Sir, We are having Duty paid Stock and also Duty paid Capital Assets procured from DTA. Is it required to pay duty on the same while de-bonding? My understanding is that we need to pay duty, on de-bonding, on capital assets and stock which were procured without payment of duty i..e through issue of CT3 or PC (Precur .....

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..... ement Certificate) is it Correct? Regards, SAKTHIVEL Reply By Ganeshan Kalyani: The Reply: It is logical to reverse as you said provided you have proper books of accounts segregating the assets duty paid and under bonding. similarly for RM. Reply By Ganeshan Kalyani: The Reply: Sir if it is 100% EOU then while purchasing capital asset it would have been duty free. Is my understanding right?
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..... Discussion Forum - Knowledge Sharing .....

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