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

[Malay pota]

Reply to (1) If you want to add your value for dispatch of item from Port to Project site you need to generate your invoice which will create complication of IGST claim and set of of GST etc.If you really want value addition in such case you need to make transaction of High Sea Sale basis. in this case you may add your Value.

Reply to (2) If the authority issue certificate that so and so Spares part ( the spar parts should be individually and specifically mentioned in the certificate and the import invoice also should be showing that the Spar part for _______machinery then you may have benefit of the concessional rate of duty.

AI Summary

Concessional import duty: direct dispatch and spares qualify only with proper invoicing, high sea sale structuring, or specified certification. Concessional import duty under the notification applies subject to transactional and documentary conditions: value addition prior to dispatch necessitates invoicing and gives rise to IGST and GST implications unless structured as a high sea sale to permit addition of value; concessional duty for spare parts requires the essentiality certificate to list parts individually and the import invoice to state the parts are for the named machinery.