Applicability of GST on the clearance of UCC Cargo - Customs - PUBLIC NOTICE NO. 17/2021

Government Of India Ministry Of Finance, Department Of Revenue Office Of The Chief Commissioner Of Customs (Chennai IV) Custom House, No. 60, Rajaji Salai, Chennai 600 001. F. No. S.Misc. No. 134/2019-UCC (Part-1) Date: 12/02/2021 PUBLIC NOTICE NO. 17/2021 Sub: Applicability of GST on the clearance of UCC Cargo -reg. Kind attention is invited to the provisions of Section 48 and 150 of the Customs Act, 1962 regarding disposal of Uncleared/Unclaimed cargo. 2. In respect of the clearance of Uncleared/Unclaimed cargo under section 48 of the Customs of Act, 1962. after identifying the bidder. the BE is filed by the custodian in the name of the bidder and the same is then assessed by the proper officer as per Regulation 3 of Uncleaned Goods (Bill of Entry) Regulation.1972 and the assessed customs duty along with IGST is being paid by the custodian in the name of the bidder for the subject cargo. On payment of applicable duty. out or charge and delivery order will be issued by the Customs. 3. As per Section 150(2)(C) of the Act, the sale proceeds for an UCC cargo is Cum-Duty value of the goods as the Duty Portion for the cargo is appropriated from the sale proceeds of an UCC Cargo. The same is reiterated in Para No. 3 (viii) of the CBIC circular No.50/2005-cus., dated 01.12.2005. Hence, the bid amount for an UCC cargo is clearly cum-duty value, inclusive of customs duty and IGST. 4. Complaints are received from the trade that GST on the bid value is being demanded from the HI bidder by the Custodians and the Custodians are not honouring the delivery order issued by this office. 5. In this regard, is reiterated that no amount over and above the bid value in whatsoever form is demandable from the HI bidder. The custodian is in the receipt of bid amount from the HI bidder after appropriation or amount towards duty/IGST, at all any further additional tax such as SGST etc is payable, it can be paid from the balance bid amount heid by the Custodian. For the appropriation of bid amount, the Custodians are hereby directed to adhere to the provisions in Section 150 of the Customs Act, 1962. 6. Any difficulty in the implementation of this public notice may be brought to the notice of the Joint Commissioner of Customs, Chennai - IV 7. This issue with the approval of the Commissioner, Chennai - IV. (P. SARAVANA PERUMAL) JOINT COMMISSIONER OF CUSTOMS (CH-IV)