 "Customs, excise")
We refer to Para 6.38 of the HBP regarding conversion of DTA units into EOU. It says that in case DTA unit has taken EPCG authorisation, the conversion would be permitted only if either the unit has fulfilled the stipulated export obligation and obtained EODC or has made payment of applicable duties and taxes and compensation cess on capital goods imported under the EPCG Scheme. In our case, we have two DTA units ‘A’ and ‘B’. We want to convert only the unit ‘A’ into EOU. Do we have to close all the EPCG authoristions or only the EPCG authorisations taken for unit ‘A’?
In my opinion, you have to close the EPCG authorisations taken for the capital goods installed in unit ‘A’ only, the DTA unit that is being converted into EOU. Besides, if you had reckoned the aggregate of annual average of both the units for endorsement in the EPCG authorisations, you can ask to revise the annual average exports for the outstanding EPCG authorisations taken for unit ‘B’ on the basis of exports of only the unit ‘B’ for the subsequent period.. As this matter is not specifically dealt with in the FTP or HBP, I suggest that you seek necessary clarification from the DGFT.
In respect of our export shipment under DBK, the scroll was generated in the month of April and due to some technical issues the DBK claim amount was credited in our account in the month of July. Now, the export proceeds are not realised in full and so, we need to surrender the proportionate DBK amount with interest. The customs authorities are demanding interest from the date of generation of scroll but we are of the view that we need to pay interest only from the date the amount was credited in our account. Is our stand correct?
The claim of the Customs that the date of payment of payment of the drawback is the date of generation of scroll is incorrect, as Rule 15(3) of the said Customs and Central Excise Duties Drawback Rules, 2017 says that the date of payment of drawback and interest, if any, shall be deemed to be, in the case of payment- (a) by cheque, the date of issue of such cheque; or (b) by credit in the exporter's account maintained with the Custom House, the date of such credit. So, your stand that you need to pay interest only from the date the amount was credited in your account is correct.
As an EOU, we procured some inputs under notification 52/2003-Cus dated 31.3.2003 from a bonded warehouse under an ex-bond B/E. We want to return the goods to the seller due to certain quality problems. What is the procedure to be followed?
You may follow the procedure prescribed at Para 6.14(a)(ii) of FTP that requires you to surrender the BCD exemption availed and intimate the jurisdictional customs. You may pay the GST and remove the goods under an invoice.
