XYZ is an 100% EOU unit. They import raw material without payment of Customs Duty and IGST. However, presently the goods manufactured from these raw materials are supplied only in domestic market and at the time of supply they pay appropriate customs duty and IGST. 1) Can the authorities object to this on the ground that when XYZ know that it is going to be used for supply in domestic market how they can claim customs duty and IGST exemption? 2) While manufacturing, certain raw materials and finished goods gets rejected on which customs duty and IGST is not paid. Will this be objected?
Kaustubh Karandikar Asked question September 1, 2020