Customs - Exemption from payment of SAD to parts, components and accessories etc. of Mobile Handsets under Notification No. 21/2012-Cus
1. UNDER notification No.21/2012-Cus dated 17.3.2012 (S.No. 1 of the Table), "all goods which are exempt from the whole of the duty of customs leviable thereon or in case of which "Free" or "Nil" rates of duty of customs are specified in column (4) under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and which are also exempt from the whole of additional duty of customs leviable thereon under sub-section (1) of section 3 of the said Act, or on which no amount of the said additional duties of customs is payable for any reason," are exempt from SAD.
2. Parts, components and accessories, etc required for the manufacture of mobile handsets are exempt from BCD and CVD under notification No. 12/2012-Cus, dated 17.3.2012 (S.No. 431 of the Table) subject to the condition that the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996.
3. Sl. No. 5 of the Table to notification No.21/2012-Cus dated 17.3.2012 exempted from payment of SAD to parts, components and accessories etc for the manufacture of mobile handsets specified against Sl. No. 431 of Notification No. 12/2012-Cus, dated 17.3.2012. The exemption was valid until 31.3.2013 and was subject to actual user condition , that is to say, the importer was required to follow the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996.
Now, the doubt in the field is whether the same exemption can be availed under Sl. No.1 above after 31.03.2013 that is under Sl. No. 1 of notification No.21/2012-Cus dated 17.3.2012.
CBEC clarifies:
Exemption from SAD under notification No. 21/2012-Customs (S.No. 1 of the Table) may be allowed at the port of import on the basis of registration and the certificate issued by the jurisdictional central excise authorities w.r.t S.No. 431 of notification No. 12/2012-Customs without any requirement of a separate registration/certificate issued under the said Rules w.r.t notification No. 21/2012-Customs, dated 17-3-2012.
CBEC Circular No. 43/2013-Customs, Dated: November 08 2013