Page 105 - ELT_1st July 2020_Vol 373_Part 1

2020 ] GTN TEXTILES LIMITED v. SECRETARY, M.F. (D.R.), NEW DELHI 15

during the said job work is also brought back from the job workers’ premis-
es.
4. Further to utilise the idle capacity of the EOU/EPZ units, it has al-
so been decided that the EOU/EPZ units in textile, ready-made garments,
agroprocessing and granite sectors may be permitted to undertake job work
from the DTA units provided the finished products produced by such
EOU/EPZ units will be exported directly from EOU/EPZ units itself and
these goods will not be sent back to the DTA.
5. The instructions cited in para 1 above stand modified to the above
extent.
8. This Circular has been issued to ensure full utilisation of the capacity
of Export Oriented Units in the Export Processing Zone and states that such units
may engage in activities of processing, subject to condition that such finished
goods, post-processing by the EOUs, shall be exported directly from the
EOU/EPZ units and shall not be sent back to the Domestic Tariff Area (DTA).
9. Clarifications were sought by the Ministry of Commerce and Trade
as to which entity would be responsible for filing the necessary shipping docu-
ments in cases where a part of the job work has been carried out by a unit in an
EOU. To settle this ambiguity, Notification 74 of 1999, dated 5-11-1999 was is-
sued wherein at paragraphs 1 to 4 the Board states as follows :
‘I am directed to refer to paragraph 4 of Board’s Circular No. 67/98-
Cus., dated the 14th September, 1998 on the above subject under which the
EOU/EPZ units in textiles, ready-made garments, agro-processing and
granite sectors have been allowed to undertake job work on behalf of the
DTA units. This is subject to the condition that the finished products pro-
duced by such EOU/EPZ units will be exported directly from EOU/EPZ
unit itself and that these goods will not be sent back to the DTA unit.
2. As per Paragraph 9.17(d) of Exim Policy, 1997-2002, as amended
up to 1-4-1999, the EOU/EPZ units in aquaculture, animal husbandry, elec-
tronics hardware and software, can also undertake job work for export on
behalf of DTA units with the permission of Asstt. Commissioner of Cus-
toms. In this connection, it has been brought to the notice of Board by Trade
& the Ministry of Commerce that EOU/EPZ units are facing difficulty in
doing job work from DTA units in the absence of a Department Circular ex-
tending the benefit of para 4 of above said circular to the sectors of aquacul-
ture, animal husbandry, electronics hardware and software.
3. The matter has been examined by the Board and it has been de-
cided to extend the benefit of para 4 of Board’s Circular 67/98-Cus., dated
14-9-1998, to the EOU/EPZ units in aquaculture, animal husbandry, elec-
tronics hardware and software sector also subject to the condition that fin-
ished products produced by such EOU/EPZ units will be exported directly
from such units and these goods shall not be allowed to be brought back to
DTA unit Board’s circular 67/98-Cus., dated 14-9-1998, stands modified to
the above extent.
4. It has been brought to the notice of the Board that there is a lack of
clarity as to who will file the Shipping Bill and where the Shipping Bills of
such exports will be assessed. It is clarified that the Shipping Bill in such
case will be filed in the name of DTA unit and the name of EOU/EPZ unit
will also be mentioned on the Shipping Bill as job worker. In case of job
work by EPZ unit, the Shipping Bill will be assessed by the Assistant
EXCISE LAW TIMES  1st July 2020  105