100% EOU selling DTA

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Anil (Querist)
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02 December 2010 Sir,

I want to know that if 100% EOU is selling goods in DTA then how the tax is leviable.

I know that in this case custom duties are to be levied. But if the goods are covered under SWMA act, and comes under the provisions of MRP then whether MRP based valuations would be applicable for CVD u/s 3(1) i.e. equivalent to excise duty.

Or is the cenvat credit available if it is a alcoholic product. If not under which notification.

thank you.

Rajesh Kumar

Rajesh Kumar (Expert)
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06 December 2010 Tax is leviable equivalent to Custom Duty, read with notification 23/2003.
Even if it is an alcoholic product, Central Excise duty is liaviable equivalent to Custom Duty leviable on import of Alcoholic products.
As Central Excise duty is payable (equivalent to Custom Duty), Cenvat Credit is available.