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Delhi Tribunal allowed to claim refund of CVD, Cess & SAD

refund of the CVD, Cess & SAD

Tribunal allowed a refund of the Countervailing Duty, Cess & Special additional Duty:

  • In case, we have to pay Basic Customs Duty (BCD), Cess Special Additional Duty (SAD), and Countervailing Duty (CVD) on our imports made before the implementation of GST in order to regularise a bona fide default under an advance authorization.
  • After implementation of GST, GST Law restrictions prevent us from claiming an input tax credit for CVD, SAD, or cess. It is big Question in our mind that Can we claim refund of the BCD, CVD, SAD?

“We advise you to request a refund of the Cess, CVD, and SAD you have paid to regularise the default under the advance authorization.”

  • According to the Tribunal’s ruling in the matter of Newage Laminators Pvt. Ltd. [2022 (Tri. Delhi)], refunds are permitted in certain situations u/s 142(3) & (6) of the CENTRAL GOODS AND SERVICES TAX ACT, 2017.
  • The Delhi Tribunal found that a combined interpretation of Section 142(3), (5), and 8(a) of the CGST Act, 2017, permits claims for refunds of service tax and cess paid after the implementation of GST in the matter of Indo Tooling Pvt. Ltd. [2022 (Tri.Del.)].
  • So, on the basis of above said Order of Tribunal’s ruling, we advise you to apply a refund of the CVD, SAD, and cess you paid to regularise the default under the advance authorization in light of the aforementioned decisions.

Types of Customs Duty:

Normally Following are kind of Customs Duty applicable in India.

  • Basic Customs Duty – (allow to take the refund)
  • Countervailing Duty (CVD) – (allow to take the refund)
  • Additional Customs Duty or Special CVD- (allow to take the refund)
  • Safeguard Duty- (Not -allow to take the refund)
  • Anti Dumping Duty- (Not -allow to take the refund)
  • National Calamity Contingent Duty- (Not -allow to take the refund)
  • Education Cess on Customs Duty – (Not -allow to take the refund)
  • Protective Duties- (Not -allow to take the refund)

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