I have paid all exempted custom duties under amnesty scheme

[Dinesh kumar]

What is additional Custom duty and special additional Custom duty ? 

I have paid 100% interest on CVD also while regularisation of advance license. 

can u make request to Custom for refund of interest paid on CVD? 

What is CENVANT credit of CVD? 

[KASTURI SETHI]

Q. What is Additional Customs Duty ?

 Ans. Here is an extract of the judgement of Hon’ble Supreme Court in the case of Collector of Customs Vs. Presto Industries 2001 (2) TMI 133 - Supreme Court.

Additional duty of Customs - Nature and Scope - Additional duty is in addition to Customs Duty levied under  Customs Act, 1962 and not a Countervailing duty - Scrap or waste material of imported goods arising in Kandla Free Trade Zone not having been paid additional duty, not entitled for benefit of exemption from excise duty under Notification No. 16/83-C.E. - Section 3 of   Customs Tariff Act, 1975. - A perusal of Section 3(1) of the  Customs Tariff Act shows that on any article imported into India, a duty in addition may be levied to be called ‘additional duty’ equal to the excise duty for the time being leviable as may be in force on an item manufactured in India and in case it is not so manufactured as may be leviable on the class or description of articles to which the imported article belong. It is also clear that the ‘additional duty’ is in addition to the Customs Duty levied under  Customs Act, 1962 on any article which is imported into India. The additional duty is in addition to what is specified in the first and second schedule of the  Customs Tariff Act. It is not called a counter-vailing duty, it may though result in serving such purpose for manufacture of such articles in India. It is to be noticed here that sub-section (3) of Section 3 of the  Customs Tariff Act make a provision for levy of additional duty as would counter-balance the Excise Duty leviable on any raw material which may be over and above any duty levied under sub-section (1). It is a provision independent of sub-section (1) of Section 3 taking care of counter balancing of Excise Duty. 1999 (5) TMI 29 - Supreme Court; 1985 (6) TMI 178 - Supreme Court relied on]. [para 8].

Q. What is Special Additional Customs Duty ?

Ans. This is Special Additional Duty (SAD) levied under Section 3 (5) of the  Customs Tariff Act whereas Additional Customs Duty is levied under Section 3 (1) and 3(3) of the  Customs Tariff Act. The object is to provide equal and fair environment/conditions to the manufacturers who are engaged in similar products in India. Hence it is called Special Additional Duty (SAD).

 

[KASTURI SETHI]

Q. What is CENVANT credit of CVD ?

Ans. Correct word is CENVAT. It stands for Central Value added Tax. CENVAT came into force w.e.f. 1.4.2000. Earlier it was known as MODVAT (Modified Valued Added Tax). CVD stands for Countervailing duty. CVD is equal to Central Excise duty levied on a like product manufactured in India. CVD is imposed when excisable goods are imported. CENVAT Credit/Modvat Credit was available on CVD.

"Purpose of CVD is to protect the domestic market from unhealthy competition. If there is no excise duty on the goods produced domestically, there is no question of levying CVD on imported goods" ----Supreme Court in the case of Ahujasons Shawl 2015 (8) TMI 337 - Supreme Court.

CVD is not Customs duty. CVD is levied under Section 3(1) of the Customs Tariff Act whereas Customs Duty is levied under Section 12 of the Customs Act.

[Shilpi Jain]

Any CVD paid now you cannot take credit you may go for refund of it.

AI Summary

Countervailing duty ensures parity with excise; CENVAT credit and refund paths differ for importers. Additional Customs Duty is imposed over basic Customs Duty to align imports with excise on domestic products; Special Additional Duty creates parity for domestic manufacturers. Countervailing Duty matches central excise on like domestic articles and is levied under the Customs Tariff, while CENVAT allows input tax credit (formerly MODVAT) that in some circumstances applied to CVD; where CENVAT credit is not available, a refund claim for CVD may be pursued.