Imports made against DEPB licences issued with endorsement of Notfn. No. 34/97-Cus dated 7.4.1997- exemption from special additional duty-Clarification- clarification issued vide Circular NO. 36/2007-Cus., dated 03.10.2007

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....g. Attention of importers/exporters , CHAs and general trade is invited to the CBECs Circular No. 36/2007-Cus dated 03.10.2007 on the above subject. The Circular is reproduced below: I am directed to invite your attention to the above mentioned subject and to say that a doubt has been raised as to whether exemption from special additional duty can be allowed to the goods imported under the DEPB Scheme against licences issued in pursuance of the Supreme Court judgement dated 23.8.2005 in the case of Government of India & Ors. Dian Tobacco Association in Civil Appeal No. 5196 of 2005 (arising out of SLP (Civil) No. 15844 of 2004) in respect of export of tobacco from ICD, Guntur that took place during the period from 7.4.1997 to 26.11.1997 ....

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....s made from ICD, Guntur during the period 7.4.1997 to 26.11.1997. These licences are reportedly issued with an endorsement that This notification, as mentioned above, initially provided exemption from customs duties including additional duty subject to debit of these duties from DEPB licences. Later on , a new section 3A was inserted in the Customs Tariff Act. 1975 vide Finance Act, 1998 by which 4% special additional duty (SAD) was levied. However, vide notification No. 34/98-Cus dated 13.6.1998 as amended by notification no. 48/98-Cus dated 17..7.1998 imports under notification No. 34/97-Cus were exempted from this duty. Thus, the 4% SAD was not required to be debited or paid in the case of goods imported under DEPB Scheme under notificat....