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Regarding DTA Sale - DC�s permission is acceptable to excise
authorities & refusal of excise authorities to honour permission of
Development Commissioner for DTA sale given to a 100% <a href='http://www.eximguru.com/exim/eou/default.aspx'>EOU</a>
Circular No. 93 dated 21st November 2000
It has been
brought to the notice of the Board that Central Excise authorities in Bhiwadi
Division have refused to honour the permission given by the Development
Commissioner, Noida Export Processing Zone, to a 100% EOU for DTA sale. In
brief, the matter is that a 100% EOU on the basis of physical export of goods
worth Rs. 1.42 crores during the period from 1-4-2000 to 30-9-2000 had
approached the Development Commissioner for DTA sale permission. The Development
Commissioner, Noida gave the permission to the unit for sale in Domestic Tariff
Area of goods worth approx. Rs. 72 lakhs on the basis of export performance of
the unit during the previous half-year. However, the Central Excise authorities
in Bhiwadi Central Excise Division refused to allow the unit to make DTA sale on
the basis of permission given by the Development Commissioner on the ground that
as per Board�s Circular 30/ 99-Cus, dated 25-5-1999, the unit is entitled to
DTA clearance maximum upto 50% of the FOB value of exports (physical) of the
previous financial year and in the previous year, no physical export was made by
the unit. In the instant case, it may be noted that the unit came into existence
only in March 99.
2. The
matter has been considered. It is noted that as per para 9.9(b) of Exim Policy,
an EOU/ EPZ unit is allowed to sale goods in DTA upto 50% FOB value of
(physical) export subject to payment of applicable duties and fulfilment of
minimum NFEP as prescribed in Appendix 1 of the Policy. Further, as per Appendix
42 of the Handbook of Procedures, Vol. I, the unit may opt for DTA sale on a
quarterly, half-yearly or annual basis by intimation to the Development
Commissioner of the EPZ concerned. Such DTA sale entitlement accrues only
against the goods physically exported during the quarter, half year or a year as
the case may be.
3. In view of above
stated position, it is clarified that the DTA sale permission given by the
Development Commissioner, Noida Export Processing Zone, in the instant case,
allowing for sale of goods worth Rs.72.32 lakhs in the domestic market on the
basis of physical exports of Rs. 144.65 lakhs during the half year i.e. from 1st
April, 2000 to 30th September, 2000 is in order provided other conditions such
as achievement of NFEP as per Appendix are satisfied. The rejection of the same
by Assistant Commissioner of Central Excise, Bhiwadi is not correct and the unit
is eligible to clear the goods in DTA to the extent of permission given by
Development Commissioner, NEPZ on payment of applicable duties as per Section 3
of the Central Excise Act, 1944 read with notification No. 2/ 95-CE, dated
4-1-1995.
4.
Similar cases, in any, may kindly be decided in the light of above
clarification.
5.
Difficulties, if any, faced in the implementation of the instructions,
may be brought to notice of the Board at an early date.
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