DVAT on Imported Goods

[vk bh]

My client has imported 'vibrating body massager' from China. This 'massager' classifies under 5% of DVAT. Everything was going smooth, when in one of his previous shipment, the customs changed the HS Code to 'general machine equipment' and increased the custom duty. (They also believe that it could be a mistake from the side of the assessing officer and the item was misinterpreted, so they gave the speaking order to fight to get the duty difference reversed from the court)

Now what will be the applicable DVAT rate? As the item is Massager, will it continue to bill into 5% or rate should be revised to other VAT% under general machine?

AI Summary

Client Challenges Customs' Reclassification of Body Massagers; Seeks Refund and Appeals Under Notification 102/2007-Customs A client imported vibrating body massagers from China, which are classified under a 5% DVAT rate. However, customs reclassified the item as 'general machine equipment,' increasing the duty. The client questions whether the DVAT rate should change. The response suggests that the DVAT classification at 5% should remain unaffected by customs' reclassification. It advises seeking a refund of the Special Additional Duty (SAD) under Notification 102/2007-Customs and suggests filing an appeal against the customs' decision.