Supply of goods from EOUs without payment of Duty against Advance Licence
CBEC clarifies:Central Excise duty is exempted when manufactured goods are supplied by EOU to an Advance Licence/Authorisation Holder. In fact, clearance from EOU or DTA unit to Advance Licence/Authorisation holder has been allowed without payment of Central Excise duty, as both the cases are of "Import substitution." In case of supply of goods to Advance Licence/Authorisation holder, the export obligation is cast upon person holding Advance Licence/Authorisation and in case of default in export obligation recovery from the person holding Advance Licence/Authorisation is provided for in law.
CBEC Circular No.1046/34/2016-CX., Dated: September 16 2016