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TMI BlogLevy and Collection of Social Welfare Surcharge (SWS) on imports under various schemes such as Merchandise Exports from India Scheme (MEIS), Services Exports from India Scheme (SEIS) etc.X X X X Extracts X X X X X X X X Extracts X X X X ..... from India Scheme (SEIS) etc. Attention of the importers, exporters, Customs Brokers and all other stakeholders is invited to the CBIC Circular No. 02/2020-Customs dated 10.01.2020 on the subject matter of levy of Social Welfare Surcharge (SWS) on imports made and present practice regarding its debit through duty credit scrips such as MEIS, SEIS etc. of the Foreign Trade Policy (FTP). 2. C AG at Chennai has pointed out that SWS should be paid in cash in respect of imports where duty is debited under MEIS scrips as the relevant Customs exemption notification exempts only Customs duty leviable under First Schedule of Customs Tariff Act, 1975. Further, representations have been received from the trade that as the goods cleared agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... para 3.15 Of the FTP, Basic Customs Duty paid through debit in the duty credit scrip is allowed to be adjusted for duty drawback. Duties debited in duty credit scrip are taken into account while determining the All Industry Rates and Brand Raw of duty drawback. Similarly, Additional Customs Duty paid on imported goods and Central Excise duty paid on domestic procurement of goods is also allowed 10 be adjusted as CENVAT Credit or Duty Drawback. Hence, duty credit scrips are only a mode of payment of duty and not an exemption from duty even though the use of the said scrip is governed by an exemption notification. 6. In this regard, attention is invited to the judgement dated 06.12.2019 of the Hon'ble Supreme Court in the case of M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he nature of education cess and secondary and higher education cess, the same cannot be said to have been exempted and as per Article 141 of the Constitution, the law declared by the Supreme Court is binding on all Courts within the territory of India, the same occupies the field. It was further opined that therefore there appears 10 be no legal bar for levy and collection of SWS. 9. In view of above there appears no exemption from SWS in the FTP the relevant Customs exemption notifications. Keeping in view the ratio laid down by Hon'ble Supreme Court in judgement dated 06.12.2019 (supra), it is clarified that SWS is not exempted and Las 10 be levied and Collected on the imported goods. 10. It is further noted that as per past p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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