Question3:

However our query is about the provision for material (finished goods) is being cleared from EOU to DTA against advance licences holder. The question is about the exemption from pay back of custom duty and IGST on such clearances. Whether it would be considered as deemed export or not for EOU, because this is not reflected anywhere. Your valuable reply in this regards will help us a lot. We value your association with us.

Answer:

The custom was charged from EOU on DTA sale as per section 3(ii) Central excise act -- reproduced below (ii) by a hundred per cent export-oriented undertaking and 16[brought to any other place in India], shall be an amount equal to the aggregate of the duties of customs which would be leviable 17[under the Customs Act, 1962 (52 of 1962), or any other law for the time being in force], on like goods produced or manufactured outside India if imported into India, and where the said duties of customs are chargeable by reference to their value, the value of such excisable goods shall, notwithstanding anything contained in any other provision of this Act, be determined in accordance with the provisions of the Customs Act, 1962(52 of 1962) and the Customs Tariff Act, 1975 (51 of 1975). 18[Explanation 1.' Where in respect of any such like goods, any duty of customs leviable for the time being in force is leviable at different rates, then, such duty shall, for the purposes of this proviso, be deemed to be leviable at the highest of those rates.] So there was need to issue exemption notification In earlier Excise law there was notification no 23/2003 But there is no such notification issued under GST so there is no exemption except as relating to advance authorization etc discussed in first mail You were suppose to pay custom because of section no 3 of excise Since no similar levy is in GST so no need to issue notification But demand can be raised for those items which were imported without tax under earlier law and this demand will be raised under custom notification which was applied at the time of duty free import (Reply dt. 16/10/2017)