| Date: |
20-07-1998
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| Notification No: |
Customs Circular No 49/1998
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| Issuing Authority: |
Indian Customs
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| Type: |
Circular
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| File No: |
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| Subject: |
Circular No. 49 dated 20th July 1998
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Circular No. 49 dated 20th July 1998
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.
ANNEXURE
Illustration in regard to Exemption from SAD of 4%
under DEPB Scheme Remarks
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(a)
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CIF Value of Imported goods
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Rs. 100/-
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(b)
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Basic Customs Duty @ 30 %
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Rs. 30/-
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to be debited in DEPB Book.
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(c)
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CVD @ 10% on Rs. 130/-
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Rs. 13/-
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to be paid in cash or debited in DEPB Book.
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(d)
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Special Customs Duty @ 5%
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Rs. 5/-
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to be debited in DEPB Book.
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(e)
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Total amount of duty payable in DEPB Book (e = b + c
+ d)
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Rs. 35/- or Rs. 48/-
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(If CVD is not paid in cash)
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(f)
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Credit available in DEPB Book.
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Rs. 20/-
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(g)
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Ratio of dubitable duties to credit available.
(g = f/ e)
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20/ 35 or 20/ 48
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(�)
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(h)
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SAD leviable = 4% of assessable value (Rs. 100) +
BCD) (Rs. 30) + CVD (Rs. 13) + Spl. CD (Rs. 5)
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(i)
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Exempted portion of SAD = g x total SAD
leviable
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Rs. 3.38 or Rs. 2.46
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(�)
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(j)
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SAD payable in cash (j = h - i)
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Rs. 2.54 or Rs. 3.46
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(�)
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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.
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