Levy and Collection of Social Welfare Surcharge (SWS) on imports under various schemes such as Merchandise Exports from India Scheme (MEIS), Services Exports from India Scheme (SEIS) etc

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....o the levy of Social Welfare Surcharge (SWS) on imports made and present practice regarding its debit through duty credit scrips such as MEIS, SEIS etc. of the Foreign Trade Policy (FTP). 2. C&AG at Chennai has pointed out that SYS should be paid in cash in respect Of imports where duty is debited under MEIS scrips as the relevant Customs exemption notification exempts only Customs duty leviable under First Schedule or Customs Tariff Act. 1975. Further, representations have been received by the Board from the trade that as the goods cleared against MEIS scrips are exempted from Basic and Additional Duty of Customs, therefore S WS should also be zero. The levy of S WS has also been challenged in various High Courts by the trade on the said ....

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....nt while determining the All Industry Rates and Brand Rate of duty drawback. Similarly, Additional Customs Duty paid on imported goods and Central Excise duty paid on domestic procurement of goods is also allowed to be adjusted as CENVAT Credit or Duty Drawback. Hence duty credit scrips arc only a mode of payment of duty and not an exemption from duty even though the use of the said scrip is governed by an exemption notification. 6. In this regard, attention is invited to the judgement dated of the Hon'ble Supreme Court in the case of M/S Unicorn Industries Vs. Union of India and others (Civil Appeal Nos. 9237 & 9238 of 2019) wherein it has inter-alia been held that "A Notification has to be issued for providing exemption under th....