Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
D. Forum
What's New


Discussions Forum
Home Forum Customs - Import - Export - Customs - SEZ This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

← Previous Next →

Imported goods found defective and this, no consideration payable to the foreign seller, Customs - Import - Export - Customs - SEZ

Issue Id: - 116314
Dated: 23-5-2020
Imported goods found defective and this, no consideration payable to the foreign seller

  • Contents

Goods were imported from China and supplied to a customer in India who in turn supplied it to a government department. But later such goods were found defective and rejected by the department and returned to the ultimate importer. Custom duties & IGST was duly paid.

Upon discussion with the Chinese supplier, they agreed with the defects and waived the consideration without return of such goods. Now, goods are lying with the importer which will be sold as scrap later.

Now, my question is whether consideration not paid/payable to the Chinese supplier will result in any kind of legal default or comolication under GST, FEMA, Customs, etc.?

Post Reply

Posts / Replies

Showing Replies 1 to 1 of 1 Records

1 Dated: 23-5-2020

Please check the terms and condition of your agreement in this regard. Since your supplier has accepted that goods were of inferior quality and having certain defects, therefore, waived the foreign remittance against such supply. On GST front, we don't foresee any issues, since goods were rejected by the ultimate user as No ITC will be available. On FEMA front, you would have to inform your Banker (AD) about such rejection of goods and waiver of payments by the foreign supplier to get its impact on IDPMS. On customs front, thought not necessary, you may send an intimation letter to show your bona fide about the whole gamut along with documentary evidences/complete chain of documents that defected goods are destroyed or sold as scrap.


Post Reply

← Previous Next →

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Site Map - Recent || Site Map || ||