Exemption under Notification 50/2017 dated 30.06.2017 vis a vis notfn 25/2005

[Nash Industries I Pvt Ltd]

Import of Cash Dispenser falling under HSN 8472 is exempted vide serial number 467(i) and imports of parts of Cash Dispenser (hereinafter referred to as "CD")is exempted vide serial number 467(ii) of Notification 50/2017.

Import of parts and components of CD for the manufacture of parts of CD (parts of CD falls under HSN 8473) is it exempted from the levy of BCD under the above notification.

Similarly import of ATM is exempted vide serial number 1 of Notification 25/2005 cus. Import of Parts of ATM is exempted vide serial number 33 of Notification 25/2005.

Both the cases are identical.

Would appreciate the revertal.

Regards

S.Ramaswamy

AI Summary

Exemption for sub-parts used in manufacture of parts may be claimable, but requires Board clarification and actual user proof.
Whether sub-parts imported for use in the manufacture or assembly of parts of Cash Dispensers or ATMs are covered by the exemptions in Notification 50/2017 and Notification 25/2005 is contested. Revenue practice suggests denial and likely issuance of SCNs, while Board circulars on analogous electronic goods indicate sub-parts used to make exempted parts should be exempt subject to the actual user condition. A formal Board clarification is advisable to prevent litigation and ensure consistent application.