We are a 100 per cent EOU and manufacturer-exporter of textile readymade garments. We are getting garment orders from our buyer from USA and we have to import fabric from Pakistan. However, as per notification 5/2019-Cus dated February 16, 2019, duty of 200 per cent is applicable under new HS code no. 9806.00 for imports from Pakistan. Can we import fabric from Pakistan under the EOU scheme without paying duty?
As mentioned by you the said notification 5/2019 has inserted a new tariff entry at 98060000 for all goods originating in or imported from Pakistan. The 200 per cent duty is levied against that entry 98060000, which becomes part of the First Schedule to the Customs Tariff Act, 1975. As an EOU, you claim exemption on imported goods under notification no. 52/2003-Cus dated March 31, 2003. That notification grants exemption on goods imported by EOUs from the whole of customs duty leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (besides other duties and taxes). Therefore, you can import fabric from Pakistan under the said notification 52/2003 without payment of duty.
We are holding an EPCG authorisation. We did some job-work for an exporter by way of embroidery on garments and invoiced to the exporter for the job-work done. Can invoice value in rupees representing job-work charges go towards discharge of export obligation? Is it okay to convert the rupee value of the invoice into US dollars at the exchange rate prevalent on the date of issuance of authorisation?
You have performed job-work for a domestic party.
The service of job-work is not exported. I doubt if job-work service is mentioned in the authorisation as the service through export of which the export obligation can be fulfilled. So, I do not think such service rendered in India to an exporter can be considered for discharge of export obligation against your EPCG authorisation. I may add that the export obligation can be fulfilled through export or goods or services that require the use of and thus have a nexus with the capital goods imported under the EPCG scheme and mentioned in the authorisation as export product or service.
We removed the export goods from our factory under LUT without payment of IGST in March 2018. Since we couldn’t export the goods physically within 90 days, we paid IGST with interest in June 2018. Thereafter, we physically exported the goods under the same invoice in April 2019. Now, we want to claim rebate of IGST on such export. How can we get a refund?
As per Section 54(1) of the CGST Act, 2017, any person claiming refund of any tax and interest, if any, paid on such tax or any other amount paid by him, may make an application before the expiry of two years from the relevant date in such form and manner as may be prescribed. So, you may follow the procedure prescribed under Rule 89 of the CGST Rules, 2019 and claim refund.
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