22 August 2009
Dear all we are doing jobwork for 100% EOU.job work done by us falls under ch.39 onwhich appropriate duty is 8%.The appropriate duty of excise shall not include NIL rate of duty or duty of excise is wholly exempt. The pricipal (100%EOU) is clearing goods without payment of duty not because of goods are under nil duty or exempt. my question is : 8/2005 can be availed ? If not Why?
24 August 2009
As long as the 100%EOU is sending the same under a permission and under law, the job work exemption under Not. 8/2005 should be available as the removals to DTA by the EOU results in duty payments. However represenatations maybe inorder to avoid demands in future.