Refund claim for VAT - Procedure

[Nitin Bhisikar]

We are importing the material (In Shell Almond) on payment of appropriate duties including the additional duty @4% , we are not a registered dealer and do not pass on the duty amount. We also have exemption from Sales Tax under Entitlement Certificate from DIC. We are selling these In Shell Almond after removing Shells. Can we file refund claim under Notification No. 102/2007 - Custom as this notification read with relevant circular says about payment of ' Appropriate Sales Tax or value added tax' and as per my opinion 'Appropriate Sales Tax or VAT' may include Zero or Nil rate of Sales Tax or VAT. If refund Claim can be filed then which documents need to enclosed. Your reply is awaited Cell No. 09370356211, 09028419208 email : [email protected]

[Mukesh Kumar]

NIL rate of duty can not be treated as appropriate rate of duty. Therefore, the goods which are exempt from sale tax, VAT fully, the importer of such goods can not calim refund of 4% paid u/s 3(5) of customs tariff act, 1975.

AI Summary

Nil-rate VAT treatment cannot be treated as appropriate sales tax, so customs additional duty refund unavailable. A nil or zero rate of sales tax/VAT does not qualify as appropriate Sales Tax or VAT for refund purposes; therefore goods fully exempt from sales tax/VAT do not permit the importer to claim refund of the additional customs duty paid under the customs tariff.