TaxTMI 
TaxTMI 
Countervailing duty on subsidized articles
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....ct transfer of funds (including grants, loans and equity infusion), or potential direct transfer of funds or liabilities, or both, (ii) government revenue that is otherwise due is foregone or not collected (including fiscal incentives), (iii) a government provides goods or services other than general infrastructure or purchases goods; (iv) a government makes payments to a funding mechanism, or entrusts or directs a private body to carry out one or more of the type of functions specified in clauses (i) to (iii) above which would normally be vested in the government and the practice in, no real sense, differs from practices normally followed by Governments; or (b) a government grants or maintains any form of income or price support, which operates directly or indirectly to increase export of any article from, or to reduce import of any article into, its territory, and a benefit is thereby conferred. ^9[(1A) Where the Central Government, on such inquiry as it considers necessary, is of the opinion that circumvention of countervailing duty imposed under sub-section (1) has taken place, either by altering the description or name or composition of t....
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....uch notification or to such undertaking or unit; or (ii) such article is either cleared as such into the domestic tariff area or used in the manufacture of any goods that are cleared into the domestic tariff area, in which case, countervailing duty shall be imposed on that portion of the article so cleared or used, as was applicable when it was imported into India. Explanation.- For the purposes of this sub-section,- (a) the expression "hundred per cent. export-oriented undertaking" shall have the same meaning as assigned to it in clause (i) of Explanation 2 to sub-section (1) of section 3 of the Central Excise Act, 1944 (1 of 1944); (b) the expression "special economic zone" shall have the same meaning as assigned to it in clause (za) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005).] (3) Subject to any rules made by the Central Government, by notification in the Official Gazette, the countervailing duty under sub-section (1) or sub-section (2) shall not be levied unless it Is determined that- (a) the subsidy relates to export performance; (b) the subsidy relates to the use of domestic goods over imported goo....
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....cation in the Official Gazette, make rules for the identification of such article and for the assessment and collection of any countervailing duty imposed upon the importation thereof under this section. ^17[(7A) The provisions of the Customs Act, 1962 (52 of 1962) and all rules and regulations made thereunder, including but not limited to those relating to the date for determination of rate of duty, assessment, non-levy, short-levy, refunds, exemptions, interest, recovery, appeals, offences and penalties shall, as far as may be, apply to the duty chargeable under this section as they apply in relation to duties leviable under that Act or all rules or regulations made thereunder, as the case maybe.] (8) Every notification issued under this section shall, as soon as may be after it is issued, be laid before each House of Parliament.] ************* NOTES:- 1. Substituted vide Customs Tariff (Second Amendment) Act, 1982 w.e.f. 02-09-1985 before it was read as, "(1) Where any country or territory pays, or bestows, directly or indirectly, any bounty or grant upon the production therein or the exportation therefrom of any article and th....
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....uce such duty or additional duty; and (b) refund shall be made of so much of such; duty or additional duty which has been collected as is in excess of the duty or additional duty as so reduced.] (2) The ^2[amount of any such bounty or subsidy] as aforesaid shall, from time to time, be ascertained, determined, and declared by the Central Government, after such inquiry as it may consider necessary and the Central Government may, by notification in the Official Gazette, make rules for the identification of such articles and for the assessment and collection of any ^3[duty or additional duty, as the case may be], imposed upon the importation thereof under sub-section (1). (3) Every notification issued under sub-section (1) shall, as soon as may be after it is issued, be laid before each House of Parliament." 5. Substituted vide Section 61 of the Finance Act, 2006 w.e.f. 18-04-2006 before it was read as, "within the territory of the exporting or producing country" 6. Inserted vide Section 61 of the Finance Act, 2006 w.e.f. 18-04-2006 7. Substituted vide Section 99 of the Finance (No. 2) Act, 2009 w.e.f. 01-01-1995 befo....