Benefits of High sea sales for Merchant ??

[Kishan Barai]

Suppose A imports products & B (Merchant) buys from A on high sea & sell it to C (mfg unit) now will B get refund of CVD & SAD ?? Is such purchase useful for C if we consider taxation as focol point ??

Please elaborate in details. Thanks

AI Summary

Exploring High Sea Sales: Buyer Assumes Duties, No CVD Refunds, SAD Refunds Possible Under CST, Avoids State VAT. A merchant inquired about the benefits of high sea sales, specifically regarding the refund of Countervailing Duty (CVD) and Special Additional Duty (SAD) when a merchant buys goods in transit and sells them to a manufacturing unit. One response clarified that in high sea sales, the buyer assumes all duties, and customs law does not allow refunds for imported goods. Another response noted that SAD refunds apply if the importer sells the item under the Central Sales Tax (CST), and high sea sales can help avoid state VAT, making them advantageous for the buyer.