Custom Tarriff rate for CTH 38249033 PCB Capacitor Fluid

[BRIJMOHAN GOYAL]

Dear All,

I want Custom Tarriff rates for CTH 38249033 Capacitor Fluid PCB in 2002-03.

We had import 17MT in 2002-03 , it was cleared in CTH 29022902 with BCD 15% ,CVD16% and SAD 4%. Now, custom has issued notice for payment of differential duty with interest ,@ 30% peak rate at that time, as this is to be classified under CTH38249033, So, we need Basic Custom Duty rates applicable on 8th Aug 2002.

Regards,

BM Goyal

[Raghunandhaanan rvi]

Sir,

To my knowledge, customs to issue demand notice under section 28 of customs act

within six months from the date of payment of duty . Otherwise the claim is barred by limitation.

However, department may invoke extraordinary power to issue demand if duty short paid

due to suppression of facts/ willful act or negligence of importer.

hope my view is correct.

[KASTURI SETHI]

I agree with the views of Sh.Raghunandhaanan r, Sir. The department cannot go beyond 5 years. Further, it is also relevant to know whether any bond has been executed in this case ?

[KASTURI SETHI]

Was there provisional assessment ? If so, the relevant date will be the date of finalisation of assessment.

Secondly, If bond has been executed, then the party has to deposit the Govt. dues i.e.differential without issuance of the SCN.

[KASTURI SETHI]

Sh.B.M.Goyal Ji,

For rate of duty under CTH38249033 on 8.8.2002, relevant extract of budgetary changes during 2002-03 is appended below. This can be helpful to you for further search for correct rate of duty.

Misc. Chemical Products (Chapter 38). - (1) Peak rate of customs duty on all goods falling under the Chapter is reduced from 35% to 30%, and the preferential rates of duty, wherever they occur, are reduced accordingly. The same is prescribed in the tariff and given effect from 1st March, 2002 vide Notification No. 22/2002-Customs, 2002.

(2) The rate of basic customs duty on Reference Standards is increased to 5%. The exemption from Countervailing duty and SAD will continue. [S. No. 138 in Notification No. 21/2002-Customs and S. No. 34 in Notification No. 23/2002-Customs refer].

AI Summary

Customs classification triggers differential duty demands; limitation, provisional assessment, and bond status determine recoverability and interest claims. Dispute over reclassification of imported PCB capacitor fluid from CTH 29022902 to CTH 38249033 resulted in a customs notice seeking differential duty with interest. The parties note limitation constraints on demand notices, the impact of provisional assessment and of any executed bond on the relevant recovery date and procedure, and supply chapter 38 tariff changes showing a reduction in peak customs duty and specified exemptions and rate adjustments to identify the correct basic customs duty applicable at import.