Removal of goods by a 100% Export Oriented Undertaking for Domestic Tariff Area [Rule 17] :
1. Duty payment as per rule 8: Where any goods are removed from a 100% EOU to domestic tariff area, such removal shall be made under an invoice in the procedure specified under rule 11. The duty leviable on such goods shall be paid by utilizing the CENVAT credit or by crediting the duty payable to the account of the Central Government in the manner specified in rule 8 [Sub-rule (1)].
2. Maintenance of appropriate accounts: A 100% EOU is required to maintain appropriate accounts related to production in the prescribed form giving the following details:
(i) description of goods
(ii) quantity removed
(iii) duty paid [Sub-rule (2)].
To sum up rule 17 provides that where any goods are removed from a 100% EOU to DTA removal should be under the cover of an invoice and on payment of duty as is applicable before removal of goods by debiting PLA/account current or through utilisation of cenvat credit as the case maybe. The EOU has to keep records relating to production, quantity manufactured, removed and duty that is paid.
3. Monthly return (ER-2): Such unit is further required to submit a monthly return electronically in the specified form (E.R.–2) in respect of the excisable goods manufactured in, and receipt of inputs and capital goods, in the unit. The return is to be submitted to the Superintendent of Central Excise within 10 days from the close of the month to which the return relates [Sub-rule (3)].
4. Scrutiny by the proper officer: The proper officer may on the basis of information contained in the return filed by the unit under rule 17(3), and after such further enquiry as he may consider necessary, scrutinize the correctness of the duty assessed by the assessee on the goods removed, in the manner to be prescribed by the Board [Sub-rule (4)].
5. Furnishing of documents and records by assessee: Every assessee shall make available to the proper officer all the documents and records for verification as and when required by such officer [Sub-rule 5].
6. Late fee for belated filing of return: Where the return is submitted under sub-rule (3) by the assessee after the due date [i.e. 10 days from the close of the month to which the return relates], the assessee shall pay to the credit of the Central Government, an amount calculated at the rate of ` 100 per day for each day of default subject to a maximum of ` 20,000 [Sub-rule (6)].