Levy of special additional duty of customs (CVD) @ 4% under Duty Free Credit Entitlement (DFCE) Schemes

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..../2006 Sub: Levy of special additional duty of customs (CVD) @ 4% under Duty Free Credit Entitlement (DFCE) Schemes - reg. Attention of all the Importers, Exporters, CHA's and Members of the Trade is invited to Board's Circular No. 20/2006-Cus. Vide F. No. 605/44/2006-DBK dated 21.07.2006 regarding Levy of special additional duty of Customs (CVD) @ 4% under Duty Free Credit Entitlement (DFCE)....

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....(1) of Section 3 of the Customs Tariff Act, 1975 and that there is no exemption available in respect of special CVD of 4% which is leviable on the said goods under sub-section (5) of Section 3 of the said Customs Tariff Act. Therefore, the special CVD cannot be paid through the scrips issued under the said scheme. A view has been expressed that in such cases (imports under these two notifications)....

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....CVD of 4% is not exempt under the aforesaid notifications, the same can not be debited through the scrips issued under DFCE Scheme. It is clarified that in all such cases (i.e. imports under DFCE under these notifications) the importer shall have to pay the special CVD in cash. Needless to mention, the Cenvat credit or drawback (brand rate), as the case may be, can be claimed in respect of this du....