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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(MElS), Services Exports from India Scheme (SEIS), etcX X X X Extracts X X X X X X X X Extracts X X X X ..... g. Attention of the Importers, Exporters, General Trade, Custom Brokers and all other stakeholders in the jurisdiction of Chennai Customs Zone, Chennai is invited to the Board Circular Nos. 02/2020-Customs dated 10.01.2020 on the above mentioned subject. 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on notifications. 5. Further, as per 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 Rate of duty drawback. Similarly, Additional Customs Duty paid on imported goods and Central Excise duty paid on domestic procurement of goods is also allowed to 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. The matter was also referred to the Department of Legal Affairs for their legal opin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anges in this regard. 9. With regard to the past cases of debits of SWS already made in the duty credit scrips, it has been decided by the Board that for ensuring ease of doing business, such past cases should not be disturbed and the payments made through debit in duty credit scrips may be accepted as revenue duly collected and recoveries in cash not be insisted for these cases. 10. Difficulties faced, if any, may be brought to the notice of the Asst. Commissioner of Customs (Appg-Main), for necessary action. (R. SRINIVASA NAIR) COMMISSIONER OF CUSTOMS CHENNAI-IMPORT - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmanagementin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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