9911796707
TMI BlogImport at Concessional RateX X X X Extracts X X X X X X X X Extracts X X X X ..... Import at Concessional Rate X X X X Extracts X X X X X X X X Extracts X X X X ..... d "B" in turn is used to manufacture the finished goods "C". Now customs department is denying the concessional rate on 'A' since the same is not directly used for "C". Any defence possible? Reply By KASTURI SETHI: The Reply: Dear Sir, There is no substance in the objection of the department. The department's view is devoid of legal force. It is certain that the department will issue SCN. Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lief is possible only through litigation. Flow chart of manufacturing process duly certified by the chartered engineer will prove that the input A has been used directly in the manufacture of final product C. Both A and B have become an integral part of C. Exemption cannot be denied but as per judgement of the Supreme Court, the burden of proof is cast upon the person who avails exemption. So you ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot escape litigation. If SCN is issued that will be vacated at the first stroke by the Appellate Authority. Reply By Kaustubh Karandikar: The Reply: Kasturi Ji thanks for your kind advice. I am also of the same view. However unfortunately there is no case law on this specific issue to defend. Reply By raghunandhaanan r vi: The Reply: My view is that : * Notification No. 25/2002 provides ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty exemption for importation of capital goods for use in the manufacture of finished products mentioned there in the Notification. * Column 2 in the table shows description of capital goods / instruments/ equipment to be imported duty free * Column 3 in the table is showing the description of finished product to be manufactured by using the capital goods imported duty free Hence once you ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufactured a description of finished goods as mentioned in column 3 of the table , you have fulfilled the condition of the notification - nothing more to do by you.
In my opinion, customs objection is not valid as long as the importer satisfy the condition of the notification and they need not think beyond that.
Thanks X X X X Extracts X X X X X X X X Extracts X X X X
|
