Vishal Metal Industries Vs Commissioner of Customs (CESTAT Allahabad)
CESTAT Allahabad held that customs duty leviable on manufacturing of stainless steel coils under Advance Authorisation Scheme is exempt. Accordingly, appellant is entitled to refund of CVD paid on the same.
Facts- The appellant is engaged in manufacturing of Stainless Steel Utensils and is registered with GST department. The appellant filed two bills of entry both dated 09.09.2017 for import clearance of ‘stainless steel coils’. The appellant had imported the said goods under Advance Authorization Scheme. At the time of import, CVD @ 18.95% and IGST @ 18% were levied in terms of Notification No. 1/2017-Customs (CVD) dated 07.09.2017 which was paid by the appellant and got the goods cleared.
The raw materials imported under Advance Authorization Scheme were exempted vide Notification No. 18/2015-Cus dated 01.04.2015 from all kind of duties i.e. Basic Customs duty, whole of the additional duty, safeguard duty and anti dumping duty. Further, Government of India issued Notification No. 1/2017-Cus (CVD) dated 07.09.2017 whereby CVD has been levied @ 18.95% minus anti-dumping duty u/s. 9 of the Customs Tariff Act, 1975. Thereafter, Government of India vide Notification No. 79/2017-Cus dated 13.10.2017, exempted CVD levied u/s. 9 of the Customs Tariff Act, 1975 when goods imported under Advance Authorization Scheme. Accordingly, DGFT also issued Notification No. 33/2015-2020 dated 13.10.2017 to exempt CVD under Advance Authorization Scheme.
