If you have neither imported the inputs used in the manufacture of export product without IGST
payment under notification 78/2017-Cus dated October 13, 2017, nor procured from domestic sources such inputs under deemed export benefits under notification 48/2017-CT dated October 18, 2017, then you can export on payment of IGST
under refund claim under Rule 96(10) of CGST Rules, 2017. Otherwise, you have to export under LUT and claim refund of the unutilised credit under Rule 89 of the CGST Rules, 2017.
As per Para 5.01(a) of FTP, the EPCG Scheme allows import of capital goods
(except those specified in negative list in Appendix 5F) for pre-production, production and post-production at zero customs duty. Para 9.08 of FTP defines “Capital goods” as any plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernisation, technological upgradation or expansion. It includes packaging machinery and equipment, refrigeration equipment, power generating sets, machine tools, equipment and instruments for testing, research and development, quality and pollution control. So, you can import pollution control equipment under EPCG scheme.
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