TaxTMI 
TaxTMI 
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?
Import at Concessional Rate
09 Apr 2019 
3 Replies 
1413 Views Asked by
Concessional import duty applies when an input forms part of the manufacturing chain producing the listed finished product.
Concessional import duty under Notification 25/2002 is available where an imported input or capital good is used in the manufacturing chain that produces a specified finished product; entitlement is satisfied by demonstrating that the input becomes an integral part of the final listed product. A certified manufacturing flow chart can serve as evidence, but the claimant bears the burden of proof and may face show cause notices if the department disputes the claim. (AI Summary)
Concessional import duty under Notification 25/2002 is available where an imported input or capital good is used in the manufacturing chain that produces a specified finished product; entitlement is satisfied by demonstrating that the input becomes an integral part of the final listed product. A certified manufacturing flow chart can serve as evidence, but the claimant bears the burden of proof and may face show cause notices if the department disputes the claim. (AI Summary)