TMI BlogCountervailing duty on subsidized articlesX X X X Extracts X X X X X X X X Extracts X X X X ..... production or otherwise, the Central Government may, by notification in the Official Gazette, impose a countervailing duty not exceeding the amount of such subsidy. Explanation . - For the purposes of this section, a subsidy shall be deemed to exist if - (a ) there is financial contribution by a Government, or any public body in the exporting or producing country or territory, that is, where - (i) a Government practice involves a direct transfer of funds (including grants, loans and equity infusion), or potential direct transfer of funds or liabilities, or both; (ii) Government revenue that is otherwise due is foregone or not collected (including fiscal incentives); ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nquiry as it considers necessary, is of the opinion that absorption of countervailing duty imposed under sub-section (1) has taken place whereby the countervailing duty so imposed is rendered ineffective, it may modify such duty to counter the effect of such absorption, from such date, not earlier than the date of initiation of the inquiry, as the Central Government may, by notification in the Official Gazette, specify. Explanation . For the purposes of this sub-section, absorption of countervailing duty is said to have taken place,- (a) if there is a decrease in the export price of an article without any commensurate change in the resale price in India of such article imported from the exporting country or territory; or (b) un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the purposes of this sub-section, (a) the expression hundred per cent. export-oriented undertaking shall have the same meaning as assigned to it in clause (i) of Explanation 2 to sub-section (1) of section 3 of the Central Excise Act, 1944 (1 of 1944.); (b) the expression special economic zone shall have the same meaning as assigned to it in clause (za) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005.). ] (3) Subject to any rules made by the Central Government, by notification in the Official Gazette, the countervailing duty under sub-section (1) or sub-section (2) shall not be levied unless it is determined that - (a) the subsidy relates to export performance; (b) the subsidy relate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essation of such duty is likely to lead to continuation or recurrence of subsidization and injury, it may, from time to time, extend the period of such imposition for a further period of five years and such further period shall commence from the date of order of such extension : Provided further that where a review initiated before the expiry of the aforesaid period of five years has not come to a conclusion before such expiry, the countervailing duty may continue to remain in force pending the outcome of such a review for a further period not exceeding one year. 8 [ Provided also that if the said duty is revoked temporarily, the period of such revocation shall not exceed one year at a time. ] (7) The amount of any such subsidy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. before it was read as, 2. Substituted vide The Finance Act 2017. before it was read as, (c) the subsidy has been conferred on a limited number of persons engaged in manufacturing, producing or exporting the article unless such a subsidy is for - (i) research activities conducted by or on behalf of persons engaged in the manufacture, production or export; (ii) assistance to disadvantaged regions within the territory of the exporting country; or (iii) assistance to promote adaptation of existing facilities to new environmental requirements. 3. Inserted vide FINANCE (NO. 2) ACT, 2019 w.e.f. 01-08-2019 4. Inserted vide THE FINANCE ACT, 2021 dated 28-03-2021 w. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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