Customs - EOUs eligible for exemption on raw materials even when ships are exempt
IN a complicatedly worded Notification an amendment is made to Notification No.52/2003-Cus, dated 31.03.2003. This amendment reads as:
"Provided that where such finished goods (including rejects, waste, scrap, remnants and by-products) are either non excisable or such finished goods (including rejects, waste, scrap remnants and by-products) other than goods falling under heading/tariff item 8901, 8902 00 10, 8905 10 00 or 8906 if imported, are leviable to nil rate of duty of customs specified under First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and nil additional duty leviable under section 3 of the said Customs Tariff Act, read with exemption notification in this regard, if any, no exemption in respect of inputs utilized for the purpose of manufacture of such finished goods (including rejects, waste, scrap, remnants and by-products) shall be available under this notification”.
This perhaps means that:
EOUs are now eligible for duty exemption on raw materials/parts consumed in manufacture of certain specified ships/vessels and cleared to DTA, even if such ships/vessels are exempt from basic customs duty and central excise/CV duty.
Similar notification is issued for Central Excise also.
Notification No. , Dated: November 24, 2015 and Notification No. , Dated: November 24, 2015