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

[MUKUND THAKKAR]

High sea sale means transfer the ownership of import goods in transit, buyer have to pay all duties. refund is not allow in custom law in case of importing the goods.

[Sanjay Kumar]

SAD refund from customs will be applicable if the importer sales the imported item on CST. High sea sales are beneficial as the buyer can avoid state VAT in this case because importer is selling to buyer on high seas.

AI Summary

High sea sale transfers import ownership and affects duty refund entitlement and potential avoidance of state VAT. High sea sale transfers ownership of imported goods in transit, typically leaving the buyer responsible for import duties; customs law does not generally permit duty refunds solely due to such a transfer. A possible SAD refund route exists where the importer sells the imported goods under Central Sales treatment, and high sea sales may alter state VAT liability for the buyer.