Tata Motors Ltd. Vs Commissioner of Customs (CESTAT Mumbai)
CESTAT Mumbai held that the amount of Social Welfare Surcharge (SWS) payable would be ‘Nil’ in case where Basic Customs Duty (BCD) is Nil. Accordingly, the appeal is allowed.
Facts- The issue involved in the present appeals for consideration by the Tribunal is, whether Social Welfare Surcharge (SWS) is required to be paid in cash in respect of import of goods, which are fully exempt from payment of Basic Customs Duty (BCD) through Notification No. 24/2015-Customs dated 08.04.2015 issued by the Central Government under Section 25(1) of the Customs Act, 1962. It is an admitted fact on record that the appellants had paid the SWS in cash under protest at the time of importation of subject goods.
Conclusion- Hon’ble Bombay High Court in the case of LA TIM Metal & Industries Limited Vs. The Union of India and Ors. it held that though SWS is payable at 10% on BCD, but where the BCD is ‘Nil’, then SWS shall also be computed as ‘Nil’. For arriving at such conclusion, the Hon’ble High Court have also relied upon and referred to the Circular No. 3/2022-Cus. dated 01.02.2022 issued by the Central Board of Indirect Taxes & Customs (CBIC), clarifying that the amount of SWS payable would be ‘Nil’, in the cases where the aggregate customs duties is ‘zero’, even though the SWS is not exempted.
