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 ..... d rawn to Circular No. 02/2020-Customs dated 10th January, 2020 ( available at www.cbic.gov.in) issued by the Central Board of Indirect Taxes Customs, New Delhi vide F.No. 605/06/2019-DBK. The matter pertains to Levy 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. 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 cleare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. In this regard, attention is invited to the judgment dated 06.12.2019 of the Hon'ble Supreme Court in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for providing exemption from additional duties in the 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 611 Courts within the territory of India, the same occupies the field. It was further opined that therefore there appears to be no legal bar for levy and collection of SWS. 9. In view of above there appears no exemption from SWS in the FTP and the relevant Customs exemption notifications. Keeping in view the ratio laid down by Hon'ble Supreme Court in judgment dated 06.12.2019 (supra), it is clarified that SWS is not exempted and has to be levied and collected on the import ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
