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) etcX X X X Extracts X X X X X X X X Extracts X X X X ..... etc - reg. Kind reference is invited to the 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 SYS 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 or Customs Tariff Act. 1975. Further, representations have been received by the Board from the trade that as the goods cleared against MEIS scrips are exempted from Basic and Additional Duty of Customs, therefore S WS should also be zero. The levy of S WS has also been challenged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 arc 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 judgement dated of the Hon'ble Supreme Court in the case of M/S Unicorn Industries Vs. Union of India and others (Civil Appeal Nos. 9237 9238 of 2019) wherein it has inter-alia been held that A Notification h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith Basic Customs Duty and Additional Duties of Customs. However, keeping in view the position explained hereinabove, it emerges that SWS cannot be debited through duty credit scrips and therefore has to be paid by the importer in cash. Directorate General of Systems has been requested to make the relevant System level changes in this regard. 10. With regard to the past cases of debits of SWS already made in 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. 11. Any difficulties, in this regard, may ..... X X X X Extracts X X X X X X X X Extracts X X X X
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