EOU inputs destroyed are duty free

The CESTAT, Chennai, by its order dated 13 July 2026, held that obsolete inputs imported or procured duty-free by a 100% Export Oriented Unit can be destroyed within the factory without payment of Customs or Excise duty where the destruction is carried out after due intimation to the department. The Tribunal ruled that the 2015 amendments to the exemption notifications are merely clarificatory and therefore retrospective in operation.