Staying Updated Customs, FTP and WTO newsletter

Transcription

1 Staying Updated, FTP and WTO newsletter May 2014: Volume 17 Issue 02 In the issue In the issue Classification Items imported could not be said to be unassembled articles in completely knocked down form to be classified as assembled articles, where they undergo manufacturing and processing activity to create finished goods Valuation Valuation could not be redetermined on the basis of higher value of goods that are not similar or comparable Others Refund claim for SAD not available where the sale invoice mentioned that the credit of SAD was available Duty drawback for indigenous manufacture in terms of section 75 of the Act held not allowable where the imported and exported goods were found to be the same Foreign trade policy Notifications and circulars Central Government enlisted Trade Promotion Council of India for issuing Certificate of Origin (Non preferential) Manufacturer having availed DEPB benefit cannot be allowed to avail rebate of duty paid on inputs used in manufacture of goods as the same would amount to double benefit Central Government extended anti-dumping duty on imports of Vitamin-E of all forms excluding natural forms, originating in, or exported from, People s Republic of China till 26 March, 2015

2 Others The Delhi High Court, in ONGC v Union In the issue of India (2014-TIOL-587-HC-DEL), Classification held that where the shipping bill for reexport of goods was presented within 2 In CC v D-Link India Pvt Ltd (2014- TIOL-669-CESTAT-MUM), the Mumbai years from the import, but the order for Tribunal held that where the items and processing activity, the items re-export post-verification and beyond 2 years, drawback would not be imported underwent manufacturing imported could not be said to be inspection of documents was issued allowable under section 74 of the unassembled articles in completely knocked down form that were to be classified as assembled articles. These Act, 1962 (the Act) in the absence of any order extending the time. had to be treated as parts and The Delhi Tribunal, in CC v Monocha components as these were subjected to Enterprises (2014-TIOL-721-CESTATmanufacturing to create finished goods. DEL), held that the refund of Special Valuation Duty of (SAD) was liable to be rejected where the sale invoice In Shri Maruti Nandan Impex v CC mentioned that the credit of SAD was (2014 (302) ELT 406), the Mumbai available, as this was a violation of the Tribunal held that while determining condition prescribed in the relevant the value of the imported goods on the notification. basis of the value of similar goods, the lowest of the value declared for similar The Delhi High Court, in Napino Auto goods is to be considered. Electronics Ltd v CC (2014-TIOL-732- HC-DEL) and the Ahmedabad Tribunal, The Mumbai Tribunal, in House Full in NK Overseas v CC (2014-TIOL-765- International Ltd v CC (2014 (302) ELT CESTAT-AHM), held that refunds 467), held that the value of imported arising as a consequence of finalization goods could not be re-determined on of provisional assessment made before the basis of higher value of goods that 13 July, 2006 were allowable without were not similar or comparable insofar the test of unjust enrichment as the these were different in design, size and applicable provisions in the Act during material used. the relevant time did not have the clause of unjust enrichment. 2 May Volume 17 Issue 02

3 In Pravin Gupta v CC (2014-TIOL-781- CESTAT-MUM), the Mumbai Tribunal held that financing an importer did not make the financer the importer of goods, as the Act defined importer to be the one who files the Bill of Entry for import and who claims to be owner of the goods. In a revision application before Department of Revenue in KLT Automotive and Tabular Products Ltd (2014 (303) ELT 294), the Government of India held that duty drawback for indigenous manufacture in terms of section 75 of the Act was not allowable where the imported and exported goods were found to be the same and the imported goods were not subjected to any processing in India. In such case, claim could have been filed under section 74 of the Act. 3 May Volume 17 Issue 02

4 Foreign trade policy Notifications and circulars The Central Government has dispensed with the requirement of value addition for re-export of specified food, medicine and medical equipment to Iran. (Notification No. 79 (RE-2013)/ dated 30 April, 2014) The Central Government has authorised two new agencies for issuance of Certificate of Origin (Preferential) against various Bilateral/ Regional Trade Agreements. (Public Notice No. 59 (RE-2013)/ dated 15 May, 2014) The Central Government has enlisted Trade Promotion Council of India for issuing Certificate of Origin (Non preferential). (Public Notice No. 60 (RE-2013)/ dated 15 May, 2014) The Gujarat High Court, in Geetanjali Woollens Pvt Ltd v UOI (2014-TIOL- 574-HC-AHM), held that the validity of extended Letter of Permission (LoP) for Export Oriented Unit (EOU) could not be curtailed even if the policy changes, when the manufacturer has made substantial investment on the basis of LoP, as curtailment of extension of LoP would be hit by principle of promissory estoppel. In Gajroula Spinning Mills v CCE (2014- TIOL-626-CESTAT-DEL), the New Delhi Tribunal, in a stay matter, held that invocation of extended period of limitation for demand of duty on capital goods de-bonded from EOU under Export Promotion Capital Goods (EPCG) Scheme was unjustifiable as the entire material facts were within the knowledge of competent authorities. The Mumbai Tribunal, in Kohinoor India Ltd v CC (2014-TIOL-743- CESTAT-MUM), held that the refund claim could not be entertained unless the original assessment at higher rate was appealed against. In Micro Inks v CCE (2014 (303) ELT 99), the Ahmedabad Tribunal, held that exemption of Special Additional Duty (SAD) was available on stock transfer of goods from EOU to Domestic Tariff Area (DTA) as these goods could not be said to be exempted from levy of sales tax/ VAT. The Revisionary Authority, Department of Revenue, in case of Hi Speed Offsets (2014 (303) ELT 316 (GOI)), held that a manufacturer having availed Duty Entitlement Pass Book (DEPB) benefit, could not be allowed to avail rebate of duty paid on inputs used in manufacture of goods as the same would amount to double benefit. 4 May Volume 17 Issue 02

5 Notifications The Central Government has levied provisional anti-dumping duty on imports of Phenol, falling under chapter 29, originating in, or exported from, among others Chinese Taipei and the United States of America, for a period of six months from 16 May, ( (ADD) Notification No. 23/2014 dated 16 May, 2014) The Central Government has levied antidumping duty on imports of Persulphates, falling under chapter 28, originating in, or exported from countries which among others include Taiwan and the United States of America, for a period of five years from 16 May, ( (ADD) Notification No. 22/2014 dated 16 May, 2014) The Central Government has extended levy of anti-dumping duty on imports of Nylon Tyre Cord Fabric (NTCF), falling under chapter 59, originating in, or exported from, People s Republic of China, till 28 April, ( (ADD) Notification No. 21/2014 dated 16 May, 2014) The Central Government has extended levy of anti-dumping duty on imports of Cold Rolled Flat Products of Stainless Steel, falling under Custom Tariff Heading (CTH) 7219, originating in, or exported from, People s Republic of China, Korea RP, European Union, South Africa, Taiwan (Chinese Taipei), Thailand and United States of America (USA), till 21 April, ( (ADD) Notification No. 20/2014 dated 12 May, 2014) The Central Government has extended the levy of anti-dumping duty on imports of all Fully Drawn or Fully Oriented Yarn/ Spin Draw Yarn/ Flat Yarn of Polyester, falling under chapter 54, originating in, or exported from, the People s Republic of China, Thailand and Vietnam, till 25 March, ( (ADD) Notification No. 18/2014 dated 9 May, 2014) The Central Government has extended the levy of anti-dumping duty on imports of Flax Fabric, falling under chapter 53, originating in, or exported from, the European Union, the People s Republic of China and Hong Kong, till 25 March, ( (ADD) Notification No. 17/2014 dated 9 May, 2014) The Central Government has extended the levy of anti-dumping duty on imports of Vitamin-E of all forms excluding natural forms, falling under chapter 29 or 23, originating in, or exported from, People s Republic of China, till 26 March, ( (ADD) Notification No. 16/2014 dated 9 May, 2014) 5 May Volume 17 Issue 02

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