Anti Dumping Duty on Parts of CFL - DGAD clarifies but Customs not convinced.
Now Board is convinced and issues clarification
In TIOL-DDT 604 -01.05.2007, we highlighted an important issue as follows
We are told of a letter addressed by DGAD to TRU in CBEC on the Anti Dumping duty on the scope of the product CFL imported from China PR and covered under Anti-Dumping Investigation conducted by the Designated Authority.
We understand that DGAD in letter OM No. 162/2006-DGAD dated the 1st May, 2006 has told the Revenue Ministry that
a. | Anti dumping duties were recommended / imposed on the following two types of CFLs : |
i) Complete, ready to use compact fluorescent lamps wherein choke is integrated within the lamp. ii) Complete, ready to use compact fluorescent lamps wherein choke is external. | |
b. | Anti dumping duties were not recommended on parts / components of CFL. |
c. | "CFL with choke" is complete ready to use compact fluorescent lamps wherein choke is an internal part. |
d. | CFL without choke as defined in the final findings is complete ready to use compact fluorescent lamps wherein choke would be external part. |
We are told that Customs Authorities simply refuse to accept the clarification. Fair enough, when they normally do not accept even CBEC clarifications and Supreme Court orders!
But it's time that either DGAD/and or the CBEC issues a public clarification on the issue.
Now, the CBEC has issued a clarification, "the Anti-Dumping Duty imposed vide notification No.138/2002-Customs dated 10.12.2002 does not apply to the parts/components of CFL. In view of the above, you are requested to finalise all the pending assessments, if any, accordingly."
The DGAD had given the clarification on 1st May, 2006 and it took the Board more than a year and a half to confirm the DGAD's clarification. In the meantime, demands, seizures, notices, penalties and litigation had a festive time! Even we pointed this out six months ago, when harassed importers brought it to our notice. Anyway, better late than never and the Board deserves our thanks for putting an end to litigation at least at this late stage! Again as usual, this important communication is not a public circular but a private letter from the Board to the Chief Commissioners. It beats logic, why the Board is shy to put its messages in the public domain!
CBEC F.No.528/53/2007-Cus.(TU) Dated 25th October, 2007.