Tax payer importing fertiliser (taxed @ 5%) and made branch transfer to out of state by packing it in packing material(taxed @ 18%). Final product that is fertliser packed in packing material is taxed at 5%. In this scenario, whether the tax payer can be eligible for refund under inverted duty structure. If eligible what is procedure for calculation for exact refund.
No refund can be paid on imported goods and BCD IS PAID ON SUCH GOODS you can claim refund of inputs that are use to make final product i.e.18% formula is given in rule 89
CAclubindia
