Page 105 - DHC Budget Book 2021-22 Final
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(ii) such article is cleared into the DTA or used in manufacture of any goods that are cleared into the DTA in which case, CVD & ADD shall be applied on the portion of the article so cleared or used, as was applicable when it was imported into India.
Comment:
The power to impose additional duties in anti-circumvention cases from the date of the initiation of the investigation has already been provided in the rules under CVD & ADD. Now machinery provision has been proposed to be introduced in the Act itself.
9.3.1 Changes in Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 [Notification No. 09/2021-Customs (N.T.)] [Effective from 02-02-2021]
The rules have been amended to allow Import of goods at concessional rate of Customs duty for use in manufacture of finished goods on job work basis.
Detailed procedure has been prescribed for sending imported materials at the premises of the job worker, return of processed goods to the importer or to another job worker as directed by the importer, the maximum period for which goods can be sent to the job worker, etc.
Concessional rate not available on Gold, jewellery & articles thereof, and other precious metals sent on job work.
Penalty upto H 50,000/- can be imposed on importer or job worker for contravention of the above Rules.
The adoption of Anti-Absorption principles
are in line with the guidelines issued by the WTO have already been implemented in the European Union. It is expected that detailed procedures explaining the various modalities in implementing the amendment may be notified soon.
For further imposition of CVD and ADD after review, the CG shall have a greater flexibility allowing it to take into consideration special circumstances that may require a shorter period than the full 5 year period.
Further provisions have been introduced to allow clearance of imported “capital goods”
after having been used for specified purpose, on payment of differential duty, along with interest, on the depreciated value of such capital goods. The depreciation norms prescribed are similar to that as applied to EOUs as per FTP.
Comment:
The issue relating to use of imported goods by job workers for manufacture of specified goods under the above Rules has been disputed by the Revenue contending that concessional rate is available only where the manufacture takes place in the factory owned by the importer himself. The aforesaid amendment in the rules puts this dispute to rest and allows the benefit of concessional rate even when the goods are manufactured in the factory of the job-worker.
9.3
Amendments in Rules framed under the Customs Act, 1962
Content
Customs Indirect Tax 103
