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Extension of benefit of conditional Central Excise notifications for the purpose of levy of countervailing duty under Section 3(1) of the Customs Tariff Act, 1975 - regarding - Customs - 037/01

Extract

..... al Excise notification prescribing a concessional excise duty should be taken into account for the purpose of levy of additional duty (CVD) on imported goods. As for instance, candles attract excise duty at 16%. However, units which do not avail of CENVAT credit in respect of input or capital goods, and which pay the entire duty either in cash or through their PLA can avail of a concessional rate of excise duty of 4%. The issue raised is whether candles imported into India should attract CVD at .....

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Extension of benefit of conditional Central Excise notifications for the purpose of levy of countervailing duty under Section 3(1) of the Customs Tariff Act, 1975 - regarding - Customs

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..... ication No. 19/88 by stating that they had not availed themselves of Modvat Credit on the inputs used in the manufacture of the imported consignment of Zinc Ash. This is not the correct understanding of the requirement of notification. The exemption notification stipulates that "no credit of duty paid on the inputs used in the manufacture of said goods have been taken under Rule 56A or Rule 57A of Central Excise Rules 1944". In order to satisfy this condition it has to be shown that the Zinc Ash .....

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Extension of benefit of conditional Central Excise notifications for the purpose of levy of countervailing duty under Section 3(1) of the Customs Tariff Act, 1975 - regarding - Customs

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..... e same for CVD purposes. Accordingly, it is clarified that the imported goods will not be eligible for the benefit of conditional Central Excise notification when it is not possible to verify the conditions stipulated in the notification. Thus, in the example cited above, candles imported into India will be chargeable to CVD @ 16% and not 4% as it is not possible to verify the condition regarding non-availment of CENVAT credit as also other conditions. Where practice is otherwise, immediate safe .....

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Extension of benefit of conditional Central Excise notifications for the purpose of levy of countervailing duty under Section 3(1) of the Customs Tariff Act, 1975 - regarding - Customs

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