Excise Liability on 100% EOU on clearance to rest of India

Arvind Sharma (ACA) (1432 Points)

26 August 2010  

Hello Everybody.,

Please reply to this post...

What duties shall be levied on 100% EOU on clearance to other place in India..??

there are three ans that I got., which are as below:-

As per Proviso to Sec 3 of CEA, 1944, 

["duties of excise

which shall be levied and collected

on any excisable goods which are produced or manufactured

by a hundred per cent export-oriented undertaking and allowed to be sold in India

shall be an amount equal to the aggregate of the duties of customs"]

as per this proviso, duties will be., 

Assessable Value                                                                                                                  xxxxx

a. BCD (50% exempt - EN issued by CG)                                                        xxx

b. CVD u/s 3(1) of Custom Act [ ED + Excise Cess*]                                       xxx

c. Custom Cess on (a+b)                                                                                                      xxx

d. Sp. CVD  on (AV+ a+b+c)                                                                                                   xxx

e. Total Custom Duty (a+b+c+d)                                          xxx   (Which is Excise Duty as per Proviso to Sec 3 of CEA, 1944)

f. Excise Cess on (e)                                                              xx    (as EC & SHEC has to be charged also)

Now., the confusion is that., at point (b) as well as point (f), we are charging two time Excise Cess..., is it justifiable...??

there is also a Case Law  "Sarla Performance Fibers Ltd. (formerly Sarla Polyester Ltd) [Tribunal]" and w.e.f. Sep 2009, it has been clarified that Cess at point (f) shall be charge...

 

Now plz let me know,. whether, at point (b) Excise Cess will be chargeble or not...??

and another que is about availability of CCR of above duties, which duties are eligible for CCR to buyer...???