Import duty benefits under Custom Notification 50/2017(T) S.No.414

[BRIJMOHAN GOYAL]

Sir,

We are importing Raw material , Components etc for manufacture and supply of Power Plant Equipment. We are importing with concessional custom duty under Custom Notification 50/2017 at S.No. 414 against Essentially Certificate issued by Authority as per notification.

We need confirmation for :-

(1) Benefit of this notification is applicable for items Import by Manufacturer and dispatched to Project Site without any value addition i.e. directly from Port of discharge to Project Site.

(2) Benefits of this notification is also applicable for Spares to be supplied to Project , which will be used by Project Authority later on for maintenance of plant i.e Supply from Plant without any value addition.

Regards,

BM Goyal

AI Summary

Clarification on Import Duty Benefits Under Custom Notification 50/2017 for Power Plant Equipment and Spare Parts. A discussion on import duty benefits under Custom Notification 50/2017 at S.No. 414 involves a query about the applicability of concessional customs duty for materials and spares imported for power plant equipment. The query seeks confirmation on whether the benefits apply when items are dispatched directly from the port to the project site without value addition and for spares supplied for future maintenance. The response clarifies that value addition requires a high sea sale transaction to avoid complications with GST claims. For spares, benefits apply if the certificate and import invoice specifically mention the machinery involved.