Sale of Un-utilised Material

6.15

(a) In case an EOU/EHTP/STP/BTP unit is unable to utilize the goods and services, imported or procured from DTA, it may be (i) transferred to another EOU/ SEZ/EHTP/STP/BTP unit or (ii) disposed off in the DTA with the approval of the Customs authorities on payment of applicable duties and submission of import Authorisation, if required, or (iii)exported. Such transfer from EOU/EHTP/STP/BTP unit to another such unit would be treated as import for the receiving unit.

(b) Capital goods and spares that have become obsolete/ surplus, may either be exported, transferred to another EOU/EHTP/STP/BTP/SEZ or disposed of in the DTA on payment of applicable duties. The benefit of depreciation, as applicable, will be available in case of disposal in DTA. No duty shall be payable in case capital goods, raw material, consumables, spares, goods manufactured, processed or packaged, and scrap/ waste/ remnants/ rejects are destroyed within the Unit after intimation to the Custom authorities or destroyed outside the Unit with the permission of Custom authorities. Destruction as stated above shall not apply to gold, silver, platinum, diamond, precious and semi precious stones.

(c) In the case of textile sector, disposal of left over material /fabrics upto 2% of cif value or quantity of import, whichever is lower, on payment of duty on transaction value may be allowed, subject to certification of central excise/custom officers that these are leftover items.

(d) Disposal of used packing material will be allowed on payment of duty on transaction value.

(Please refer CUS CIR NO. 17/2006 DATE 01/06/2006)