SEZ - Goods cleared in DTA - Entitled for exemption from CVD notwithstanding bar u/s 5A of CEA, 1944 - Omission to omit reference to SEZ in Sec 5A is legislative oversight: HC

HC Decision : As discussed earlier, legislative intention emerging is that a SEZ unit will have to liability to pay countervailing duty, if the local manufacturer of like goods is exempt from payment of whole of such duty.

Actually in this case product falling under HSN 68061000, enjoing conditional exemption.

"Goods, in which more than 25% by weight of red mud, press mud or blast furnace slag or one or more of these materials, have been used then NIL duty."

As per customs tariff act, when there are two rate of duty, then highest rate of duty apply on import. hence all importer has to pay 12% as CVD and not 0%.

if no condition in excise exemption then definetly 0% apply for DTA sale clearance, but here condition has to fulfilled by manufacturer. if indian manufacture not fulfill exemption condition, then definetly 12% duty payable.

AJAYMODIMODI AJAYMODIMODI 04/12/2014