Customs (import of goods under concessional Rate of Duty)2016

[DEEPAK SHARMA]

Sir,

A manufacturing unit established at Rudrapur (Area Based Exempted Unit) is manufacturer of LED/LCD TV. the said unit can import raw material under Customs (Import of goods at Concessional rate of duty for manufacture of excisable goods) 2016. Moreover the said unit can send the raw material to a Delhi Based unit on Job Work for assembly of of LED/LCD Tv.

Please share your knowledge in details

Thanks

[KASTURI SETHI]

Sh.Sharma Ji,

There is no such restriction for job work. However, go through Rule 12 CCC of CE Rules, 2002 and Rule 12 AAA of Cenvat Credit Rules, 2004mentioned in Notification No.20/16-CE(NT) as amended and Notification No.32/16-Customs (NT) as amended. The Govt. can impose restrictions if the assessee/applicant acts in a mala fide manner.

AI Summary

Concessional import for manufacture: job work transfers permitted, subject to applicable rules and restrictions for mala fide conduct. A manufacturing unit in an exempted area may import inputs under the customs concessional duty scheme and send those inputs for job work (assembly) at another unit; no inherent prohibition on job work exists, but operations are subject to the applicable customs, central excise and Cenvat rules and to restrictions where the applicant acts mala fide.