ALSO READ'Registered dealers can pass on duties paid on imports to buyers in DTA' 'Importers can avail of customs duty exemption and concessional CVD' 'Unused imported raw material may be sold by EOUs in DTA' 'Tax is payable on service provided by Indian entity to foreign affiliate' 'Drawback available for duty-paid inputs used in export product'
We want to re-export imported goods to a party other than the one from whom we bought the goods. Can we get duty drawback under Section 74 of the Customs Act, 1962?
Yes. CBEC circular no. 72/2002-Cus dated November 1, 2002 clarifies that "neither Section 74 nor relevant Rule or Customs Notification require that for the purpose of availing drawback under Section 74 of Customs Act, the goods should be re-exported back to the same supplier or that such re-export should only take place from the port through which the goods were imported earlier", and that "so long as the conditions specified in Section 74 of Customs Act, Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995 and relevant notifications issued under Section 74 are fulfilled, drawback under Section 74 should be allowed on merits without insisting on re-export of goods to the same supplier or that the re-export should take place from the same port".
Our foreign buyer wants to send raw materials to us free of charge for toll manufacturing, i.e. job-work. The contract is to carry on this work regularly for a year. We are considering use of exemption notification 32/97-Cus dated April 1, 1997. This notification requires us to follow the procedures laid down in Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2016. Under these rules, do we have to give intimation every time we import? Secondly, can we use our own raw materials also during job-work?
The Rules you refer to allow you to give a single intimation covering your requirement for a year. CBEC Circular no. 18/2004-Cus dated February 20, 2004 clarifies that use of indigenous materials in jobbing work will not take the processes undertaken out of "job-work" or jobbing.
We have obtained EPGG authorisation. When we export against its export obligation (EO), can we also claim duty drawback?
Yes. As per Para 5.04(d) of FTP, "Shipments under Advance Authorisation, DFIA, Drawback scheme or reward schemes under Chapter 3 of FTP would also count for fulfilment of EO under EPCG Scheme".
We have released an advertisement for recruitment of staff. Can we take Cenvat Credit of service tax charged by the advertising agency?
Yes. The definition of 'input services' at Rule 2 (l) of Cenvat Credit Rules, 2004 includes services used in relation to "advertising" as well as "recruitment".
We refer to your article "DGFT's sloppy and arbitrary decisions", wherein you have mentioned that denial of TED refund on deemed exports is an unnecessary, arbitrary and illegal restriction. What options do we have, as our claim is held up on the grounds that we have paid TED by utilising our Cenvat Credit balance?
The DGFT has now issued Trade Notice no. 17/2016 dated September 22, 2016, allowing TED refund where the duty has been paid using Cenvat Credit. So this issue is now settled and you can ask JDGFT to grant your claim on the basis of the Trade Notice.