Exemption of ADDL CVD

[Asked by Guest]

Dear Sir,

Under Customs notification no 21/2012 Sr.no 2 which enables us for exemption of ADDl CVD (4%) on pre-packed commodities with affixed MRP and which are intended for Retial Sale only.

Further if MRP pre-packed goods with affixed MRP on it if supplied for industrial use under EX-bond clearance from Customs, then even after affixing MRP on it whether we can claim exemption of ADDL CVD 4% duty.

Please explain and please give us any reference regarding this.Thanks & Regards.

AI Summary

Exemption of additional duty depends on whether goods were intended for retail sale at the time of clearance.
Notification No. 21/2012 (Sr. No. 2) exempts additional countervailing duty for pre packed goods with affixed MRP that are intended for retail sale; the test of "intended for" is fact sensitive and must be assessed at the time of clearance. Where goods bearing MRP are cleared ex bond for industrial use, entitlement to the exemption hinges on whether the requisite intention for retail sale existed at clearance; related authorities confirm that notification benefits are determined at clearance and may persist despite subsequent use or loss. Manufacturers may also consider Cenvat credit subject to factual analysis.