F.No.:S-15/05/2004 EOU Date :07.04.2004

PUBLIC NOTICE No. 17/2004

Sub: Withdrawal of Board’s Circular No. 618/9/2002 CX., dated 13.2.2002 –

Removal of goods by 100% EOU to DTA – Levy of duty on removal

of goods by 100% EOU to DTA -reg.

Attention is invited to Board’s Circular No. 618/9/2002 CX. dated 13.2.2002 [2002 (140) ELT T27] on the above subject wherein it was clarified that prior to 11.5.2001, the clearances from EOUs if not allowed to be sold in India, shall continue to be chargeable to duty under main Section 3(1) of Central Excise Act, 1944.

Attention is invited to the decision of Larger Bench of CESTAT in the case of M/s Himalaya International Ltd v. Commissioner of Central Excise, Chandigarh [2003(154) ELT 580 (Tri. – LB)] wherein it has been held that “Rate of duty as per the proviso to Section 3(1) of the Central Excise Act, 1944 would be applicable for assessing all the excisable goods, which were cleared by 100% EOU to DTA whether in terms of permission granted or in excess of permission granted”.

In view of the above judgment of the CESTAT, the Board has withdrawn Circular No. 618/9/2002 CX. dated 13.2.2002. The duty on finished goods, at the rate applicable under the proviso to Section 3(1) of the Central Excise Act, 1944 as also appropriate duty on the bonded capital goods and raw materials shall be paid before the unit is allowed to be debonded.

Sd/-

(P. Karthikeyan)

Commissioner

“Attested”

Sd/-

(V.NAGENDRA RAO)

ASSISTANT COMMISSIONER