Import at Concessional Rate

[Kaustubh Karandikar]

As per Notfn. 25/2002 Customs, concessional rate of duty is available on imported inputs used in the manufacture of specified finished goods. XYZ is importing Input “A” which is used to manufacture Intermediate Goods “B” and “B” in turn is used to manufacture the finished goods “C”. Now customs department is denying the concessional rate on ‘A’ since the same is not directly used for “C”. Any defence possible?

AI Summary

Debate Over Concessional Duty Denial for Input 'A' in Manufacturing Process; Compliance with Notification No. 25/2002 Key A forum discussion addresses a customs issue regarding the denial of a concessional duty rate for imported Input 'A,' used to manufacture Intermediate Goods 'B,' which then produce Finished Goods 'C.' The customs department argues that Input 'A' is not directly used for 'C.' One participant argues the objection lacks legal basis and suggests litigation, supported by a certified manufacturing process flow chart. Another agrees, noting no specific case law exists, while a third participant highlights that compliance with Notification No. 25/2002 should suffice, and the customs objection is invalid if the notification's conditions are met.