Custom refund

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Aakash (Querist)
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13 January 2014 Dear sir,

Please suggest me

agr mera client c form ki sale karta h or vo good bechta h jo usne import kiye the kya vo custom refund claimed kr payga or kitna or agr c form usko rec. na huye ho to

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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14 January 2014 THE Customs Notification 102/2007 dated 14.9.07 providing for exemption of 4% Special Additional Customs Duty leviable in terms of Section 3(5) of Customs Tariff Act 1975 in respect of goods imported for sales as such, by the importers to others was purportedly issued to provide a level playing field to traders vis-a vis manufacturers who do not pay local sales tax / VAT while importing goods directly for their own use and to remove the burden of double tax on such type of importers.

The benefit granted as above in terms of the notification is based on a novel method of administering exemption. The importer is not straightaway entitled for exemption when he imports and clears the goods for sale. He has to pay the 4% duty and then claim refund later based on evidence that local sales tax / VAT has been paid on such goods. The government has followed up this notification with a circular issued on 26.10.2007. As per this circular the conditions to be satisfied by an importer to claim refund are (1) he should have paid the 4% duty. (2) he should have sold these goods through invoices clearly indicating that no credit of this duty will be admissible under Cenvat Credit Scheme. (3) appropriate sales tax / VAT has been paid on these goods.