Circular No. 49/98- Customs
F.No. 605/78/98- DBK
Government of India
Ministry of Finance
Department of Revenue , New Delhi
Notification No. 48/98- Cus. dt. 17.7.98 has been issued by the Department of Revenue (copy enclosed). This notification provides that SAD is completely and unconditionally exempt on goods imported under DEPB Scheme (Under Notification No. 34/97-Cus.). In effect, SAD would not be levied on that portion of value the duty payable on which is covered by the credit. The remaining portion of SAD which is not covered by the credit in the DEPB Book would be paid in cash as obviously the excess value cannot be treated as imported within the credit available in the DEPB Book. An illustration for the calculation of exemption from SAD is shown in the Annexure attached here whit for post export DEPB. In case of pre-export DEPB, the SAD will be completely exempt.
Illustration in regard to Exemption from SAD of 4% under
DEPB Scheme
| (a) | CIF Value of Imported goods | Rs. 100/- | |
| (b) | Basic Customs Duty @ 30 % | Rs. 30/- | to be debited in DEPB Book. |
| (c) | CVD @ 10% on Rs. 130/- | Rs. 13/- | to be paid in cash or debited in DEPB Book. |
| (d) | Special Customs Duty @ 5% | Rs. 5/- | to be debited in DEPB Book. |
| (e) | Total amount of duty payable in DEPB Book (e = b + c + d) | Rs. 35/- or Rs. 48/- |
(if CVD is not paid in cash) |
| (f) | Credit available in DEPB Book. | say Rs. 20/- | |
| (g) | Ratio of debitable duties to credit available. (g = f / e) |
20 / 35 or 20 / 48 |
( “ |
| (h) | SAD leviable = 4% of assessable value (Rs.100) + BCD) (Rs. 30) + CVD (Rs. 13) + Spl. CD (Rs. 5) | ||
| (i) | Exempted portion of SAD = g x total SAD leviable | Rs. 3.38 or Rs. 2.46 |
( ” ) |
| (j) | SAD payable in cash (j = h – i) | Rs. 2.54 or Rs. 3.46 |
( ” ) |
| Balance of SAD as at (j) above, is to be paid in cash being in excess of duty adjusted against DEPB credit, the exact amount (j) will be Rs. 2.54 if CVD is paid in cash, ^ Rs. 3.46 of CVD is also debited in DEPB Book. |
