Can i pass on CVD for Spares imported by Courier

[Sumeet Goyal]

Dear Sirs,

We have imported some spare parts for which we paid the custom duty (approximately 18,000/-) to fedex courier delivery person. The fedex guy gave us a Courier bill of Entry zerox copy and the duty calculation document.

In the Courier bill of Entry there are names of total 7 parties alongwith our name. We are registered with DGFT have a valid IEC and are registered with Central Excise As Dealer (not manifactureres)

Now, when wee sell this part to our customer (Who is manufacturer), can we pass on the CVD amount to him so that he can take the credit. Please help us out regarding this issue.

Best Regards,

[KASTURI SETHI]

This is relevant for you. Read and take decision. This has been inserted w.e.f. 31.12.15 to facilitate credit.

Cenvat Credit Rules, 2004 - Sixth Amendment of 2015

In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely :-

1.	(1)	These rules may be called the CENVAT Credit (Sixth Amendment) Rules, 2015.
	(2)	They shall come into force on the date of their publication in the official Gazette.

2. In the CENVAT Credit Rules, 2004, in rule 9, in sub-rule (1), in clause (d), after the words “Foreign Post Office”, the words “or, as the case may be, an Authorized Courier, registered with the Principal Commissioner of Customs or the Commissioner of Customs in-charge of the customs airport,” shall be inserted.

[Notification No. 27/2015-C.E. (N.T.), dated 31-12-2015]

[KASTURI SETHI]

In continuation of my reply dated 30.12.2016, the purpose of this amendment by way of insertion is to allow credit on Courier Bill of Entry. Since this Bill of Entry is addressed to more than one, only one person can retain original. It does not mean that credit of CVD paid should be disallowed to others. An assessee should not suffer because of flaw in the law, if any. In my view, you can get credit after getting the zerox certified from the Customs Authorities. A certificate should be obtained. Only attestation will not serve purpose. There are two basic conditions. Duty should be paid and duty paid goods should be utilized in or in relation to the manufacture of dutiable final product. It is not the intention of Govt. to disallow genuine credit, if these conditions are fulfilled.

During my positing in Audit Wing (I remained 6 years in audit as Inspector and Supdt.), we have been allowing credit on certified zerox copy if original was lost subject to the production of FIR and other docs. In your case no copy of FIR is required.

You are to make efforts to get a certificate on Zerox copy. The Customs authorities keep the record of such certificates. In your case you should suffer at all because you have paid duty and you have other proofs also. Customs record also ratify duty paid character.

[Kishan Barai]

How the billing would be made in the above case ??

Let us assume A import goods via courier company & pay all import duty 18,000 (including CVD of 12.5℅) & sell it to B ( Manufacturing Unit) who manufacture & sell the goods domestically.

How B will get refund of CVD in lue of Central excise ??

Please elaborate sir,

Thank You

[KASTURI SETHI]

Dear Querist,

Pl. find attached latest judgement on this issue:-

2017 (3) TMI 170 - CESTAT MUMBAI Evotec (India) Pvt Ltd Versus Commissioner of Central Exicse, Mumbai-III

AI Summary

Cenvat credit for courier-imported goods permitted; certified Customs copy and proof of duty and use in manufacture enable credit.
Amendment to the CENVAT Credit Rules allows recognition of an Authorized Courier's Courier Bill of Entry for claiming CENVAT credit. Credit may be claimed even where the original Bill of Entry is retained by another party if a Customs certified zerox copy confirms duty payment. Credit is conditional on actual payment of duty and utilisation of the imported goods in or in relation to the manufacture of dutiable final products; mere attestation of copies is inadequate without a proper Customs certificate.