EOUs need not follow the procedure in C.E (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules
Then what? The Government has liberated them from the frying pan into the fire! As per Condition No. 6 of the Notification No. 22/2003 C.E., dated 31.3.2003, to procure inputs without payment of duty, the EOU has to follow the procedure contained in Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001. Now this condition is deleted.
Then how to procure inputs? Don't worry - the CBEC has prescribed a draconian procedure in circular No. 851/2007 dated 3.5.2007. Please see DDT 606 dated 04.05.2007 for adetailed analysis of the circular. It was suggested,"Is it worthwhile for an EOU to go through all these troubles when they can as well get the goods on payment of duty and take credit and even if they do not have DTA clearances, they can claim refund of the unutilized credit?"
It took the Board two months to remove the provision from the rule!
NOTIFICATION NO. , Dated: July 6, 2007