Annexure-III, Central Excise

[DEEPAK SHARMA]

ABC Manufacturing mobile battery applicable duty @ 2%

prior to recent budget inputs of mobile battery was imported by ABC against Annexure-III without payment of duty. As Basic Customs Duty, CVD & SAD was leviable on it. recent budget completely exempted the inputs which use in or in relation to manufacture of mobile battery. now either Annexure-III is require to import the goods or not as there is no duty on import of inputs of Mobile battery.

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

The exemption is subject to the condition that "if the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996" vide Condition No. 5 of Notification No. 12/2012-CUS dated 17.3.2012 as amended.

[DEEPAK SHARMA]

Sir, Please brief me condition,

Note: - before recent budget i was following the Annexure-III provision. i use to prepare 4 copy of Annexure-III, as per our import invoice and AC/DC countersigned the same and we deliver that Annexure-III to our CHA and on behalf of Annexure-III goods cleared from Customs @ NIL duty.

It is further submitted that, the same raw material is now fully exempted in the recent budget. than is Annexure-III require to us to produce before customs authority at the time of import of Raw material???? as imported goods is exempte.

[Rajagopalan Ranganathan]

Sir,

Rule 5 of Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2016 lays down the procedure to be followed by an importer of the said goods. It states that-

(1) The manufacturer who intends to avail the benefit of an exemption notification shall provide information –

(a) in duplicate, to the Deputy Commissioner of Central Excise or, as the case may be, Assistant Commissioner of Central Excise having jurisdiction over his factory in respect of the estimated quantity and value of the goods to be imported, particulars of the exemption notification applicable on such import and the port of import in respect of a particular consignment or for a period not exceeding one year; and

(b) one set, to the Deputy Commissioner of Customs or, as the case may be, Assistant Commissioner of Customs at the port of importation.

(2) The manufacturer who intends to avail the benefit of an exemption notification shall submit a continuity bond with such surety or security as deemed appropriate by the Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise undertaking to pay the amount equal to the difference between the duty leviable on such inputs but for the exemption and that already paid, if any, at the time of importation, along with interest, at the rate fixed by notification issued under section 28AA of the Act, for the period starting from the date of importation of the goods on which the exemption was availed and ending with the date of actual payment of the entire amount of the difference of duty that he is liable to pay.

(3) The Deputy Commissioner of Central Excise or, as the case may be, Assistant Commissioner of Central Excise shall forward one copy of information received from the manufacturer to the Deputy Commissioner of Customs or as the case may be, Assistant Commissioner of Customs at the port of importation.

(4) On receipt of the copy of the information under clause (b) of sub-rule (1), the Deputy Commissioner of Customs or, as the case may be, Assistant Commissioner of Customs at the port of importation shall allow the benefit of the exemption notification to the manufacturer who intends to avail the benefit of exemption notification and the said manufacturer, while filing bill of entry under section 46 of the Act, shall, inter-alia, provide the details of his registration number of the factory where the inputs are meant to be used.

It is nowhere stated in this rule about filing of Annexure-III.

Moreover, the exemption is subject to the condition that "if the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996" vide Condition No. 5 of Notification No. 12/2012- CUS dated 17.3.2012 as amended. Therefore if you follow the procedure under rule 5 it will suffice. This is my view

[surya narayana]

Dear Mr. Deep am ji

whatever was stated by Shri Govindarajan Ji is correct and need no intervention. However, the requirement to submit the Annexure-Iii is required if an importer is availing Any exemption notification for import of dutiable goods without payment of duty a under removal of goods under concessional rate of duty subject to certain conditions prescribed therein. In your case as stated by you that after the budget the subject items are fully exempted, where is the question of your required to submit the annexure? Unless otherwise the so called exemption is expressly provides the condition that the importer requires to follow a specific procedure

I am confident that your query is addressed and in case if you still have any clarity, pl. Mail the Notification and serial number to respond further.

Regards

suryanarayana

[DEEPAK SHARMA]

Sir,

I mean to say that, we are require to submit Annexure -III to issue by the AC/DC for the purpose to Customs or self declaration is suffice Please clarify me

[MUKUND THAKKAR]

Dear Deepak Sharma,

According to me need to file Annexure-III, eralier you are follow the procedure, but same goods has been exempted from the custom duty. so need not to file Annexure-III , if you appoch the AC/DC they will not issue the Annexure-III to you because your raw mateial is exempted from custom duty. please contact your CHA and follow the accordingly. this is my view.

[KASTURI SETHI]

Dear Sh.Deepak Sharma Ji,

I fully endorse the views of Sh.Surya Narayan, Sir and Sh.Mukund Thakkar, Sir.

[surya narayana]

Dear Deepak Ji

Considering your specific clarity on the point of Annexure-iii, there was no such provision for self attested or otherwise under the earlier or newly notified Removal of goods (under concessional rate of duty) Rules except that as per the latest rules, the assesse can submit the details of input and out put ratio etc., on self certification basis and not required to get permission from AC/DC.

However, there is no change in the views first expressed by me on the query .

Best Regards

Suryanarayana