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

Company Denied 4% Customs Duty Refund for Using Imported Yarn in Manufacturing, Per Notification No. 102/2007-Customs. A company manufacturing bobbins from imported yarn inquired about the eligibility for a refund of the 4% additional customs duty paid on yarn imports. They referenced Notification No. 102/2007-Customs, which allows refunds for dealers selling imported goods as is. The response clarified that refunds are not applicable when the imported goods are used in manufacturing new products, indicating the company would not qualify for the refund under the given circumstances.