2025 (5) TMI 1847

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....VAT as per section 21 read with item no. 30, Schedule A of the West Bengal VAT Act, 2003. Accordingly, the appellant has not paid SAD on the 'Raw Jute' imported by them. 2. A SCN was issued to the appellant demanding SAD of Rs.2,84,562/- on the ground that while importing the 'Raw Jute', the appellant has wrongly availed the exemption from Special Additional Duty  (SAD) (4% Spl CVD). According to the Notice, SAD is payable on the 'Raw Jute' imported in terms of Notification No. 21/2012. It is alleged in the notice that a condition has been attached at Sl No. 2 of the notification 21/2002 to the effect that the exemption contained in Sl No. 1 will not apply to goods in respect of which an exemption of duty has....

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....ue added tax, local tax, SAD can be levied on importation of the said articles. However, when there is no Sales Tax, Value Added Tax, Local Tax, then there can be no SAD payable on such items when imported. In this case, the item "Raw Jute" imported by them cannot be liable to Additional Duty of Customs at the rate of four percent advalorem, as there was no VAT on 'Raw Jute', as per section 21 read with item no. 30, Schedule A of the West Bengal VAT Act, 2003. Thus, the appellant submitted that the demand of SAD of Rs.2,84,562/- along with interest and penalty in the impugned order is not sustainable. 4. The Ld. A.R. submits that when the importer avails exemption of BCD on the strength of SAFTA (Certificate of Origin) certificat....

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....mount of the said additional duties of Customs is payable for any reason-Standard rate is Nil". Further, Clause 2 of the said Notification read as under:- "The exemption contained in Sl. No.1 of the table shall not apply to goods in respect of which an exemption from the duty leviable under the said First Scheduled is claimed based on the country of origin of such goods". 5.1. From the conditions of Notification 21/2012 reproduced above, we observe that if the appellant-importer has availed the exemption of BCD on the strength of SAFTA (Certificate of Origin) issued by the Export Promotion Bureau of Exporting Country, then the exemption of SAD (4% CVD) is not admissible on such import in terms of clause 2 Notification 2....