[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) Notification No. 102/2007-Customs New Delhi, the 14 th September, 2007
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the goods falling within the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India for subsequent sale, from the whole of the additional duty of customs leviable thereon under sub-section (5) of section 3 of the said Customs Tariff Act (hereinafter referred to as the said additional duty).
2. The exemption contained in this notification shall be given effect if the following conditions are fulfilled: (a) the importer of the said goods shall pay all duties, including the said additional duty of customs leviable thereon, as applicable, at the time of importation of the goods;
(b) the importer, while issuing the invoice for sale of the said goods, shall specifically indicate in the invoice that in respect of the goods covered therein, no credit of the additional duty of customs levied under sub-section (5) of section 3 of the Customs Tariff Act, 1975 shall be admissible; (c) the importer shall file a claim for refund of the said additional duty of customs paid on the imported goods with the jurisdictional customs officer;
(d) the importer shall pay on sale of the said goods, appropriate sales tax or value added tax, as the case may be;
(e) the importer shall, inter alia, provide copies of the following documents alongwith the refund claim:
(i) document evidencing payment of the said additional duty; (ii) invoices of sale of the imported goods in respect of which refund of the said additional duty is claimed; (iii) documents evidencing payment of appropriate sales tax or value added tax, as the case may be, by the importer, on sale of such imported goods.
3. The jurisdictional customs officer shall sanction the refund on satisfying himself that the conditions referred to in para 2 above, are fulfilled.
F.No. 354/129/2007-TRU (S.Bajaj) Under Secretary to the Government of India
Basically I am not aware of so much technical knowledge, therefore can you plz be so kind to solve my apprehension.
If I am pass on the excise bill to the manufacturer then should I raise the commercial invoice (i.e. the VAT/CST) bill and I can cover the 4% SAD from the manufacturer.
Or 4% SAD is something different from Sales Tax Department and has to be claimed by the manufacturer and not by me. I am only suppose to get the 4% VAT/CST which I will have to fully pay to the Sales Tax Department.
Sorry to bother again. But answer in simple language will be highly appreciated. If can explain with example will be a better solution.
There is no such word as "pass on" in taxation, without appropriate rules and registration.
if you want to pass the CVD to manufacturer, you have to get dealer registration in excise and issue dealers invoice to manufacturer on the strength of import bills, he will get credit of CVD
if you want the SAD refund, then you have to charge VAT on your such sales and claim refund of SAD paid at the time of import from customs,
Manufacturers are not charged with SAD, but once charged it can not be available as "credit" to manufacturer even.
I too have similar apprehensions. Kindly clarify whether a manufacturer of imported raw materials on which SAD (U/s.3(5) of customs act) pad can claim refund of same from customs since the manufacturer will use these raw materials and make finished goods on which VAT/sales tax will be paid.
Or, will the expression i.e., "said goods" in the notification be strictly applied to traders only since the same goods will be resold by them in the same condition.
If a manufacturer is also eligible, what happens when the sale invoice does not contain the declartion ie., Not eligible for Cenvat".
Also what happens when the manufacturer avails sales tax deferment?
I hope there are experts who will pay attention on above and throw some clarity. May be mailed to CVSURYAM@REDIFFMAIL.COM also, if possible.
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