Certification of invoices for supply of goods from DTA to EOUs – DGEP clarifies
The EOUs are eligible for deemed export benefits, one of which is refund of terminal excise duty by the DGFT/Development Commissioner. Now they would require a certificate (or endorsement on the invoice) from the excise authorities regarding duty payment, which the excise authorities will be most unwilling to give.
Now the DGEP has prescribed a simple procedure if an EOU needs such an endorsement.
1. Maintain detailed accounts of the receipt, consumption, disposal of the goods received.
2. File an intimation with the Superintendent of Central Excise within one day of the receipt of the goods with duplicate copy of the invoice.
3. The Superintendent will depute a bond officer who will conduct a physical verification of the goods and records and will submit a report to the Superintendent.
4. The Superintendent will endorse the invoice and keep a copy in the Range records.
Are we back to the Physical Control days? It is not mentioned as to what would happen if the Bond Officer does not turn up for verification and if the EOU gets an invoice every day, will the Central Excise officer visit the EOU every day. Does EOU stand for Excise Officer's Unit? And if the duty on an invoice is less than Rs. 5000/-, is it worth all the trouble?
Circular No. Dated: February 25, 2009