Rule 6(6) vii of CCR - clarification

[Vigneshwari M]

Dear Sir,

can we avail the exception under Rule 6(6) (vii) of CCR, 2004 if the goods supplied satisfy the eligibility conditions of notification 12/2012-CE

or it is available only for goods imported and supplied against (a), (b), (c) as provided in the definition in addition to satisfying the conditions of notification 12/2012 -CE?

Which view is correct? can anybody provide caselaws in this regard?

Thanks

[Mahir S]

Sir,

I am not able to fully understand your query but if the goods are imported for supply to any of the projects mentioned (a), (b) and (c) including under noti. no. 12/2012 CE, then you can avail the exemption benefit under rule 6(6) (vii) of CCR,2004.

[VINOD KUMAR]

The goods (1) must be exempted from CVD and SAD (2) They must be supplied to project mentioned in sl. No. (vii) and (3) must be exempt under 12/2012-CE. All the 3 conditions must be satisfied.

[Vigneshwari M]

Thanks sirs..

My query is,

to avail relaxation under rule 6(6) (vii), whether import of goods is mandatory or is it enough if the goods are exempted from CVD and SAD and supplied to projects under notif 12/2012

[VINOD KUMAR]

IT IS ENOUGH IF THE GOODS ARE EXEMPTED FROM CVD AND SAD UNDER A CUSTOMS TARIFF NOTF. ACTUAL IMPORT IS NOT NECESSARY.

[Vigneshwari M]

Is there any caselaw supporting this contention sir?

[VINOD KUMAR]

Case law i will try to find out and will send the citation but the rule itself is clear on this issue. Please study the text of rulevii) all goods which are exempt from the duties of customs leviable under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty leviable under sub-section (1) of section 3 of the said Customs Tariff Act when imported into India and are supplied, (a) against International Competitive Bidding; or (b) to a power project from which power supply has been tied up through tariff based competitive bidding; or (c) to a power project awarded to a developer through tariff based competitive bidding, in terms of 29[12/2012-Central Excise, dated the 17th March, 2012]].

[Vigneshwari M]

Thanks sir,

But dept contends that exception under rule 6(6)(vii) is available only for the goods which are imported and supplied against notif 12/2012.. So if you can help me with any relevant case law that import is not mandatory and it is enough if the goods are exempted from payment of CVD and SAD, it will be very helpful.

[VINOD KUMAR]

Dear Sir, please check:-1. If only imported goods are to be supplied as such, these are not exempted goods and Rule 6 is not applicable at all. 2. As the goods are exempted from CVD and SAD, no cenvat. If no cenvat, then how one can be expected to reverse cenvat which he has not availed. There cannot be case law when the provisions of rule itself is very clear.

AI Summary

Customs duty exemption applicability: exemption status, not actual import, may suffice to claim Rule 6(6)(vii) relief.
To claim relief under Rule 6(6)(vii), goods must be exempt from customs additional duties (CVD and SAD), be supplied to projects procured through competitive bidding under the central excise notification, and fall within the notification's scope. A contested issue is whether actual importation is required; contributors argue import is not mandatory if the goods are exempt from CVD/SAD and supplied to eligible projects, because no cenvat would have been availed and thus no reversal is necessary, while the department contends import is essential.