Cir. No.389/22/1998-CX, dt. 05/05/1998
- Document type
- Circular
- Reference no.
- E
- Dated
EOUs - DTA Sale -- Exemption from duty under Notif. 8/97-CE
I am directed to draw your attention to Notification 8/87-CE dated 1.3.97 which exempts the finished products, rejects, wastes or scraps specified in the Schedule to the Central Excise Tariff Act, 1985 and produced or manufactured, in a 100% EOU or FTZ wholly from the raw materials produced or manufactured, in India and sold the DTA from so much of duty of excise leviable thereon under Section 3 of the Central Excise Act, 1944, as in excess of an amount equal to duty of excise leviable under section 3 of Central Excise Act on like goods produced or manufactured in DTA and sold-in India. Doubts have arisen regarding eligibility of the benefit of the said Notifications in the following situations:-
(ii) whether the term "raw-materials" appearing in Notification No. 8/97-CE would cover within its purview the consumables as well.
b. In respect of situation (ii) a Unit is eligible for the benefit of Notification 8/97-CX, ibid, even if, imported consumables are used since the Notification does not debar the use of imported consumables, provided other conditions of the said Notification are satisfied.
Sd/-
(P.K.Sinha)
Under Secretary to the Government of India