Aluminium Engine Import

[Guest]

Hello,

We have imported Aluminium Engine scrap into India. On Import, we have paid custom duty for aluminium engine scrap. We are dismantling and segregating the Engines into raw scrap using Pneumatic Tools and Hydraulic Presses. We now wish to sell finalised Product as Aluminium Scrap and Heavy Melting steel Scrap. How do we get a refund of the custom duty that we have paid earlier other than the SAD? Further, what all certifications and licensing is required to setup the industry in the correct way.

Thank you for your assistance.

[YAGAY andSUN]

Please check Notification No. 102/2007-Customs as amended from time to time. But this notification says sale as such. In our view you may not get any benefit.

[Kishan Barai]

According to my view only SAD refund of 4% is possible in your case. To get more refund you need to export that product, more refund is not provided on domestic sales.

[YAGAY andSUN]

If you sell in domestic market then you cannot get the refund of Customs Duty Untill unless you export it out of India.

AI Summary

Customs duty refund limited to export cases; domestic resale of processed imported scrap generally ineligible. The document addresses whether customs duty paid on imported aluminium engine scrap can be refunded after domestic processing into aluminium and heavy melting steel scrap. Authorities cited indicate domestic sale of processed material generally does not qualify for refund under the relevant customs notification; refund remedies are typically available only where the processed product is exported.