Eligibility of refund of Additional duty 4%

[HIMANSHU JARIWALA]

ONE OF OUR COMAPNY MFG. BOBBINS FROM THE YARN PROCURED FROM OUTSIDE AND NO C.EXCISE REGISTRATION OBTAINED. THE COMPANY IMPORT YARN AND PAYING ADDITION DUTY OF CUSTOMS 4% IN ALL CONSIGNMENT. THE YARN SELLING IN THE MARKET AFTER MFG. BOBBIN. THE APPLICABLE VAT ALSO PAYING TIMELY & REGULARLY. THE COMPANY ELIGIBLE TO GET REFUND OF 4% ADDITIONAL DUTY FROM CUSTOM AS PER NOTIFICATION NO.102/2007-CUSTOMS, DATED:14.09.2007

[Rama Krishana]

There is no harm if you try to get the refund on technical ground. But, as per the bare understanding of the notification no. 10/2007 Cus, refund is granted only to a dealer for sale of goods as such (goods imported for subsequent sale). Refund is not granted in case where the goods are used in the manufacturing of further goods.

AI Summary

Refund of additional customs duty limited to imports sold as such; not available when imports are used in manufacturing. Refund under the notification is confined to goods imported for subsequent sale as such; it does not extend to goods that are consumed or incorporated in the manufacture of other products. A technical attempt to claim refund may be made, but substantively a manufacturer using imports as inputs is generally not eligible.