Ravi Kiran Edara, IRS

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4% AD Refunds

A Comprehensive Manual

(As on 1-4-2011)

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Compiled by

Ravi Kiran Edara, IRS

Asst. Commissioner (Refund - Air)

Index

1. The Customs Tariff Act, 1975

2. Notifications

3. CBEC Circulars

4. DGFT PN’s / Circulars

5. Public Notices / Facility Circulars

THE CUSTOMS TARIFF ACT, 1975

Section 3 (5) If the Central Government is satisfied that it is necessary in the public interest to levy on any imported article [whether on such article duty is leviable under sub-section (1) or, as the case may be, sub-section (3) or not] such additional duty as would counter-balance the sales tax, value added tax, local tax or any other charges for the time being leviable on a like article on its sale, purchase or transportation in India, it may, by notification in the Official Gazette, direct that such imported article shall, in addition, be liable to an additional duty at a rate not exceeding four per cent. of the value of the imported article as specified in that notification.

Explanation. — In this sub-section, the expression “sales tax, value added tax, local tax or any other charges for the time being leviable on a like article on its sale, purchase or transportation in India” means the sales tax, value added tax, local ta x or other charges for the time being in force, which would be leviable on a like article if sold, purchased or transported in India or, if a like article is not so sold, purchased or transported, which would be leviable on the class or description of articles to which the imported article belongs, and where such taxes, or, as the case may be, such charges are leviable at different rates, the highest such tax or, as the case may be, such charge.

Section 3 (6) For the purpose of calculating under sub-section (5), the additional duty on any imported article, the value of the imported article shall, notwithstanding anything contained in sub-section (2), or section 14 of the Customs Act, 1962 (52 of 1962), be the aggregate of —

(i) the value of the imported article determined under sub-section (1) of section 14 of the Customs Act, 1962 (52 of 1962) or the tariff value of such article fixed under sub-section (2) of that section, as the case may be; and

(ii) any duty of customs chargeable on that article under section 12 of the Customs Act, 1962, (52 of 1962), and any sum chargeable on that article under any law for the time being in force as an addition to, and in the same manner as, a duty of customs, but does not include —

(a) the duty referred to in sub-section (5); (b) the safeguard duty referred to in sections 8B and 8C; (c)the countervailing duty referred to in section 9; and (d)the anti-dumping duty referred to in section 9A.

Notification No. 19/ 2006-Customs 10 Phalguna, 1927 (Saka)

New Delhi, the 1st March, 2006

G.S.R. (E).- In exercise of the powers conferred by sub-section (5) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), the Central Government, on being satisfied that it is necessary in the public interest so to do, and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 19/2005-Customs, dated the 1st March, 2005[number G.S.R. 117(E), dated the 1st March, 2005], hereby directs that all goods specified under the Chapter, heading, sub-heading or tariff item of the First Schedule to the said Act, having regard to the sales tax, value added tax, local tax and other taxes or charges leviable on sale or purchase or transportation of like goods in India, when imported into India, shall be liable to an additional duty of customs at the rate of four percent. ad valorem.

[F.No.334/3/2006-TRU]

(S.Bajaj), Under Secretary to the Government of India

Notification No. 20/2006-Cus., dated 1-3-2006

Additional duty in lieu of State Taxes/VAT — Exemption to specified goods

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the goods of description specified in column (3) of the Table below, falling within the Chapter, heading, sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as are specified in the corresponding entry in column (2) of the said Table, when imported into India, from so much of the additional duty of customs leviable thereon under sub-section (5) of section 3 of the said Customs Tariff Act, as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the Table aforesaid :-

Table

S. No. / Chapter, heading, sub-heading or tariff item of the First Schedule / Description of goods / Standard rate
(1) / (2) / (3) / (4)
1. / Any Chapter / 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 of 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. / Nil
2. / 27 / Petroleum crude, kerosene for Public distribution scheme, liquefied petroleum gas for domestic household consumers, petrol, diesel, coal, coke and petroleum gases and fuels / Nil
3. / 9803 00 00 / All goods / Nil
4. / 31 or any other Chapter / Fertilizers and all goods for manufacture of fertilizers / Nil
5. / 4701 to 4706 / All goods for manufacture of Newsprint / Nil
6. / 4801 / All goods / Nil
7. / Any Chapter / All goods produced or manufactured in a Special Economic Zone (SEZ) unit and cleared in the Domestic Tariff Area (DTA) for home consumption, provided such goods are not exempted from sales tax or value added tax (VAT) / Nil
8. / 2616 / Gold concentrate / Nil
9. / 71 (except 7113) / All goods other than Articles of jewellery / Nil
10. / 8908 00 00 / All goods / Nil
11. / 9801 / Goods specified in item (iv) and item (vi) against S. No. 399 of the Table annexed to notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 21/2002-Customs, dated the 1st March, 2002 [G.S.R. 118(E), dated the 1st March, 2002] / Nil
12. / 84 or any other Chapter / Goods specified in List 44 appended to notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 21/2002-Customs, dated the 1st March, 2002 [G.S.R. 118(E), dated the 1st March, 2002] / Nil
13. / 8201 / Manually operated or animal driven agricultural implements, their spare parts, components and accessories / Nil
14. / Any Chapter / Aid and implements used by handicapped persons / Nil
15. / 23 / Aquatic feed, poultry feed and cattle feed including grass, hay and straw, supplement and husk of pulses, concentrates and additives, wheat bran and de-oiled cake / Nil
16. / 1404 90 40 / Betel leaves / Nil
17. / 4901, 4902, 4903 or 4904 / Books, Periodicals and journals including maps, charts and globes / Nil
18. / 27 or 4402 / Charcoal / Nil
19. / 10 / Coarse grains other than paddy, rice and wheat / Nil
20. / 4014 10, 3006 60 / Condoms and Contraceptives / Nil
21. / 5004, 5005, 5006 / Cotton and silk yarn in hank and cone / Nil
22. / 0403, 0406 10 00 / Curd, Lassi, butter mil and separated milk / Nil
23. / 68 / Earthen pot / Nil
24. / 4401 10 / Firewood except casurina and eucalyptus timber / Nil
25. / 5608 11, 54, 55 / Fishnet, fishnet fabrics and fish seeds, prawn or shrimp seeds / Nil
26. / 0401 / Fresh milk and pasteurized milk / Nil
27. / 0602, 0603 / Fresh plants, saplings and fresh flowers / Nil
28. / 7, 8 / Fresh vegetables and fruits / Nil
29. / 0703 20 00, 0910 10 / Garlic and ginger / Nil
30. / 3926 40 11, 3926 40 19, 7018 10 00 / All bangles except those made of precious metals / Nil
31. / 3002 90 10, 3002 10 / Human blood and blood plasma / Nil
32. / 33 / Kumkum, bindi alta and sindur / Nil
33. / 2, 3, 0407, 5 / Meat, fish, prawn and other aquatic products when not cured or frozen; poultry, eggs and livestock and animal hair / Nil
34. / 63 / National Flag / Nil
35. / 3101 / Organic manure / Nil
36. / 5101 / Raw wool / Nil
37. / 0511 / Semen including frozen semen / Nil
38. / 5001 00 00, 5002 / Silk worm laying; concoon and raw silk / Nil
39. / 6815 / Slate and slate pencils. / Nil
40. / 0801 19 10 / Tender green coconut / Nil
41. / 1905 / Bread (branded and unbranded) / Nil
42. / 25 01 00 10 / Common salt (Processed or un-processed) / Nil
43. / 2201 90 90, 2202 90 90 / Water other than
(i) aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized water, and
(ii) water sold in sealed container / Nil
Nil
44. / 27 / Compressed Natural Gas (CNG) for use in the Transport sector. / Nil
45. / 6913 90 00 / Idols made of clay / Nil
46. / 6914 90 00 / Clay lamps / Nil
47. / 0801 10 / Coconut in shell and separated kernel of coconut / Nil
48. / 4911 / Religious Pictures not for use as calendars / Nil
49. / 0713, 1001, 1006 / Paddy, rice, wheat and pulses / Nil
50. / Any Chapter / All goods specified in the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) / Nil
51. / 1101 00 00, 1102 00 00 / Flour Atta, Maida, Besan and Suji / Nil
52. / 1209 / All seeds other than oil seeds / Nil
53. / 1701 11 10 / Gur and Jaggeri / Nil
54. / 27 / Items covered under Public Distribution System, (except kerosene) / Nil
55. / 2106 90 99 / Papad and Vadi / Nil
56. / 1301 10 / Lac / Nil
57. / 3915 / Plastic waste / Nil
58. / 7001 00 10 / Scrap glass or scrap glass bottles / Nil
59. / 4707 / Paper waste / Nil
60. / 8524 31 11, 8524 40 11, 8524 91 12, 8524 91 13 / All goods / Nil
61. / 7113 / Articles of jewellery / 1% ad valorem

Notification No. 29/2010-Cus., dated 27-2-2010

Spl. CVD — Exemption to specified goods

TABLE

S. No. / Chapter, heading, sub-heading or tariff item of the First Schedule / Description of goods / Standard rate
(1) / (2) / (3) / (4)
1. / Any Chapter / All pre-packaged goods intended for retail sale in relation to which it is required, under the provisions of the Standards of Weights and Measures Act, 1976 (60 of 1976) or the rules made thereunder or under any other law for the time being in force, to declare on the package thereof the retail sale price of such article / Nil
2 / 61 (excluding 6117 90 00), 62 (excluding 6217 90) / All goods / Nil
3 / 8517 12 / All goods / Nil
4 / 9101, 9102 / All goods / Nil

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 102/2007-Customs

New Delhi, the 14th September, 2007

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the goods falling within the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India for subsequent sale, from the whole of the additional duty of customs leviable thereon under sub-section (5) of section 3 of the said Customs Tariff Act (hereinafter referred to as the said additional duty).

2. The exemption contained in this notification shall be given effect if the following conditions are fulfilled:

(a) the importer of the said goods shall pay all duties, including the said additional duty of customs leviable thereon, as applicable, at the time of importation of the goods;

(b) the importer, while issuing the invoice for sale of the said goods, shall specifically indicate in the invoice that in respect of the goods covered therein, no credit of the additional duty of customs levied under sub-section (5) of section 3 of the Customs Tariff Act, 1975 shall be admissible;

(c) the importer shall file a claim for refund of the said additional duty of customs paid on the imported goods with the jurisdictional customs officer;

(d) the importer shall pay on sale of the said goods, appropriate sales tax or value added tax, as the case may be;

(e) the importer shall, inter alia, provide copies of the following documents alongwith the refund claim:

(i) document evidencing payment of the said additional duty;

(ii) invoices of sale of the imported goods in respect of which refund of the said additional duty is claimed;

(iii) documents evidencing payment of appropriate sales tax or value added tax, as the case may be, by the importer, on sale of such imported goods.