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Import under advance license but consumption for both export

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This query is : Resolved

jyoti (Querist)

02 August 2008 We import inputs under advance license and these inputs are consumed for manufacturing of both Domestic and export . Custome Duty is not paid but we pay CVD & SAD and for same cenvat credit is taken.
Should we keep separate records or how much duty (Custom Duty, CVD & SAD)do we require to pay to conume it for domestic purpose.

urgent reply reqd

thanks

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

30 January 2009 Advance licence is given by jdgft for importing the goods without payment of customs duty on the grounds that it will re-exported.

If you have not exported then you have to pay customs duty along with interest from the date of import to the date of payment.

Further you have to keep one record for the imports of materials and from which you shold be in a posititon to reconcile what is exported and what is sold locally or india.

If you are not paying the customs duty for goods sold in india then you will face penalties and dificulities form the Director general of foreign trade.

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