4% refund of additional duty

471 views 2 replies

Madhukarbhansali

service

25 Points Joined March 2007

we are importing inshell Almond and paying additional custom duty of 4% than we process this material in our factory and selling almond carnels in domestic market. now i would like to know can i get complete refund of 4% additional duty though i am selling processing material which is lesser than importing quantity.

for Eg if i am importing 100kg with shell but after processing we are getting only 70kg output.

our VAT amount on domestic sell is higher than additional custom duty.

please assist can we get full refund or it will be in proportion of quantity (100:70)?

Replies (2)

CA Rishabh Goyal

CA Practice

28 Points Joined March 2013

You can claim full (100%) cenvat on additional duty of 4%:

As per "Multimetals Ltd. v. ACCE 57 ELT 209 (SC) = 1992 (1) SCC 715 = AIR 1992 SC 1532 = 1992 AIR SCW 1644" and "UOI v. Indian Alluminium Co. Ltd. - Cenvat is available on entire quantity of input even if part of input goes in process loss, since all inputs are used in the manufacture of final product, even if it is not reflected in final product.

Also, as per "CCE v. IPF Vikram India 2002" - Cenvat on inputs which have gone in waste can also be availed.

Hence, in your case if its a process loss or even if its a waste you can still claim full cenvat on the additional duty of 4%.

rakesh agarwal

Service

257 Points Joined October 2009

But Rishab, the problem here is you pay 12 + 4= 16% duty and you pass on only 12% and 4% will keep on accumulating if the value addition is less then 33%