Exemption from Additional Customs Duty for goods imported for subsequent sale – Refund claim to be filed within a year.
The government had, by Notification No. 102/2007 dated 14.09.2007, exempted goods imported for subsequent sale in India, the whole of Additional Customs Duty under section 3(5) of the Customs Tariff Act, to counter balance the sales tax, VAT etc., The exemption works in a roundabout way of first paying the duty and then claiming refund. And the refund is subject to conditions like the Additional Duty is not claimed as a credit and the importer paying the appropriate sales tax/VAT when the goods are sold.
By Circular No. 6/2008 dated 28.04.2008, the CBEC issued further clarifications and instructed,
Time – Limit: Though no time limit is fixed in the notification:
Taking into account various factors, it has been decided to permit importers to file claims under the above exemption upto a period of one year from the date of payment of duty. Necessary change in the notification is being made so as to incorporate a specific provision prescribing maximum time limit of one year from the date of payment of duty, within which the refund could be filed by any person. Unsold stocks would not be eligible for refunds.
We had then asked, “Can a Circular override an exemption notification?” and gently reminded the Board that the clock is ticking for this amendment.
It took the Government four months to notify the time limit. Now Notification No. 102/2007 is amended to stipulate that the refund claim has to be filed before the expiry of one year from the date of payment of the said additional duty of customs .
Please see - 29.04.2008 and - 18.09.2007
Notification NO. , Dated: August 1, 2008