Dear Members,
We have imported capital goods under 3% epcg scheme, now I would like to know the following:-
1) As per HBP, instalation certificate needs to be submitted within 6 months from the date of import, but when the material were importrd in a project in skd condition these needs to be erected and installed which takes more than a year time. What needs to be done in this case?.
2) As per HBP , 50% of export obligation needs to be fulfilled in 1-6 years (first block) from the date of issue of authorisation. 50% of the export is also allowed to be done of different product by group compnay. Whether such group company can export and fulfill their 50% of obligation before start of commercial production of the unit for which capital goods where imported?
3) In case where export obligation can not be fulfilled in its' entirety , the authorisation holder has the option of payment of full duty with an interest of 15%. Whether differential custom duty, CVD and SAD all are required to be paid at that time, and if, so whether Authorisation holder can take cenvat credit of CVD & SAD paid at that time and if the credit can be taken, the same in full is to be taken in the year of payment or 50% and in the year of payment and 50% in next year though by that time machine gets installed and working.
4) Further. Is there any penal provision for non-fulfillment of export obligation?
5) If in a power plant selling power machine were imported under epcg on the view that the same will be used for captive consumption for manufacturing of ferro alloys and the same wil be exported but later on plant for putting up the ferro alloys plant was dropped, then how the export obligation can be fulfilled? What is the provision in this respect?
CAclubindia
