Amount of additional duty of customs u/s 3(1)

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Assessable value of certain goods imported from USA is `15,00,000. The packet contains 15,000 pieces with maximum retail price `150 each. The goods are assessable under section 4A of the Central Excise Act, 1944, after allowing an abatement of 40%. The excise duty rate is 8% ad valorem. Calculate the amount of additional duty of customs u/s 3(1) of the Customs Tariff Act, 1975 assuming basic customs duty @ 10% ad valorem.

Replies (9)
Hi Navya. Basic Custom Duty should be on Assessable value @ 10% amounts to 150000. Further CVD u/s 3(1) on "RSP less Abatement @ 40%" =1350000 @ 8%=108000. Note:EC &SHEC on excise duty here exempt due to notification. EC & SHEC @ 3% on Custom duty+CVD u/s 3(1) to be added to above duties to find value for the purpose of special CVD u/s 3(5). Thanks.
Assessable valud is Rs.1350000/-(15000*150-40%) and basic custom duty is Rs.108000/- and additional custom duty is Rs.145800/-(1350000+108000*10%)
Sorry navya the given both tha ans is wrong becauss the rate used above are wrong. Assessable value is same as above i.e. MRP of goods less abatement Basic custom duty is 10%, so in given ques it is 135000/- . And the CVD u/s 3(1)is 8% on assessable value plus basic custom duty i.e.118800 (1350000+135000*8%) and as my friend say EC & SHEC is not applicable on case pf CVD u/s 3(1) is corrext but the rate equivaent to excise duty is chargeable.
Rashmi I think MRP based valuation is appicable only for excise by Legal Metrology Act.How Can you say me wrong????
Yes cvd should be on custom duty rsp less abatement.May be....
Final answer Custom Duty 150000 as above CVD 108000 as above + 8% On 150000 i.e. 12000=120000 Please update this with my first above answer.....
"Basic Custom duty should be on assessable value" and. "CVD should be on RSP less Abatement + above custom duty". As I did........ Rashmi if you have any query on this.Pls. ask me......
Ya I got it it was slight confusion between custom & excise

BCD = Assessable value * percentage

CVD = When RSP item = Quantity * MRP * 100% - Abaitment

CVD = When Non MRP item = Assessable Value + BCD

CESS = BCD + CVD * percentage

SAD = AV + BCD + CVD + CESS * percentage

As you mentioned in your question 4A of central excise act.

So, Additional Duty means, duty other than Basic Customs Duty ie, CVD

so, 15000*150*(100%-40%)  = 1350000*8% = 108000.00
 


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