Duty Concession

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ALPA Sukhia (Querist)
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19 May 2009 For a unit under EPCG are there any concessions available for the excise duty on the indigenous capital goods. If not the duty paid can be availed as CENVAT credit.

Please reply ASAP.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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19 May 2009 CAn you please tell which units are EPCG.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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19 May 2009 Do you mean "export promotion capital goods "??

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ALPA Sukhia

ALPA Sukhia (Querist)
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19 May 2009 yes

ALPA Sukhia

ALPA Sukhia (Querist)
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20 May 2009 Do we get any concession

Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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21 July 2024 Under the Export Promotion Capital Goods (EPCG) scheme in India, there are provisions for duty concessions and benefits related to excise duty on indigenous capital goods. Here’s a breakdown of how it works:

### Duty Concessions under EPCG Scheme:

1. **Excise Duty Concession:**
- Under the EPCG scheme, when an importer imports capital goods without payment of customs duty (or at concessional rates), they are eligible for an exemption from payment of central excise duty on similar goods manufactured domestically. This exemption is provided under Notification No. 61/95-Customs dated March 16, 1995.

2. **CENVAT Credit:**
- If excise duty is paid on indigenous capital goods purchased locally (i.e., within India), the duty paid can be availed as CENVAT credit. This credit can then be utilized for payment of excise duty on final products manufactured by the EPCG unit or for payment of service tax.

### Key Points to Note:

- **EPCG Scheme Requirements:** The duty concessions and CENVAT credit are subject to the fulfillment of conditions laid down under the EPCG scheme by the Directorate General of Foreign Trade (DGFT). These conditions include export obligations and timelines for fulfillment.

- **Usage of CENVAT Credit:** The CENVAT credit mechanism allows businesses to set off the excise duty paid on inputs (including capital goods) against the excise duty liability on their manufactured goods or services. This mechanism facilitates the flow of credit throughout the supply chain.

- **Compliance:** It is crucial for businesses availing benefits under the EPCG scheme to comply with all applicable rules and regulations, including timely fulfillment of export obligations and maintenance of proper records.

### Conclusion:

Yes, there are concessions available for excise duty on indigenous capital goods under the EPCG scheme in India. These concessions primarily involve exemption from payment of excise duty on domestically procured capital goods if similar goods are imported under the EPCG scheme. Additionally, the excise duty paid on indigenous capital goods can be availed as CENVAT credit, providing further benefit to the unit.

For specific details and implementation, it is advisable to consult with a customs and excise duty expert or a professional familiar with the intricacies of the EPCG scheme and CENVAT credit provisions.