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'Job-worked goods can be counted in discharge of export obligation'

TNC Rajagopalan 

We are an Export Oriented Unit (EOU). When we supply our manufactured goods to advance authorisation holders in a Domestic Tariff Area (DTA), we do not charge duty as per S.No. 22 of Notification No. 23/2003-C.E., dated March 31, 2003. Our excise authorities permitted this but now the audit team says that we have to surrender the exemption availed on the inputs used in the manufacture of the goods supplied at "nil" duty, in accordance with the second proviso to para 6 of Notification No. 22/2003-C.E., dated March 31, 2003, and proviso under para 3 of Notification 52/2003-Cus., dated ...

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'Job-worked goods can be counted in discharge of export obligation'

We are an Export Oriented Unit (EOU). When we supply our manufactured goods to advance authorisation holders in a Domestic Tariff Area (DTA), we do not charge duty as per S.No. 22 of Notification No. 23/2003-C.E., dated March 31, 2003. Our excise authorities permitted this but now the audit team says that we have to surrender the exemption availed on the inputs used in the manufacture of the goods supplied at "nil" duty, in accordance with the second proviso to para 6 of Notification No. 22/2003-C.E., dated March 31, 2003, and proviso under para 3 of Notification 52/2003-Cus., dated March 31, 2003. Is there any argument we can put before them to avoid this unexpected liability?In fact, the recent CBEC Circular no. 1046/34/2016-CX., dated September 16, 2016 covers this issue specifically and says that the said provisos (mentioned above) will not apply in case of supply of manufactured goods by EOU to Advance Authorisation holder in DTA, without payment of Central Excise duty. You can sh We are an Export Oriented Unit (EOU). When we supply our manufactured goods to advance authorisation holders in a Domestic Tariff Area (DTA), we do not charge duty as per S.No. 22 of Notification No. 23/2003-C.E., dated March 31, 2003. Our excise authorities permitted this but now the audit team says that we have to surrender the exemption availed on the inputs used in the manufacture of the goods supplied at "nil" duty, in accordance with the second proviso to para 6 of Notification No. 22/2003-C.E., dated March 31, 2003, and proviso under para 3 of Notification 52/2003-Cus., dated ... image
Business Standard
177 22

'Job-worked goods can be counted in discharge of export obligation'

We are an Export Oriented Unit (EOU). When we supply our manufactured goods to advance authorisation holders in a Domestic Tariff Area (DTA), we do not charge duty as per S.No. 22 of Notification No. 23/2003-C.E., dated March 31, 2003. Our excise authorities permitted this but now the audit team says that we have to surrender the exemption availed on the inputs used in the manufacture of the goods supplied at "nil" duty, in accordance with the second proviso to para 6 of Notification No. 22/2003-C.E., dated March 31, 2003, and proviso under para 3 of Notification 52/2003-Cus., dated ...

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Business Standard
177 22