Q1.
Under
which section is exemption from payment of duty given?
A.
The Central Government may exempt from
payment of duty on imported or export goods under sub-sec (1) or sub section (2)
of section 25 of the Customs Act, 1962.
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Q2. What are the different types of exemptions granted under Sec
25(1) ?
A. If the Central Government is satisfied
that it is necessary in the public interest so to do may issue notifications
under sub-section (1) of Section 25 of the
Customs Act, 1962 exempting generally any imported goods or
export goods from whole or any part of statutory duty of Customs i.e., exemption
notifications do not specify any conditions to avail of such exemption by any
importer or exporter.
Some
notifications are issued exempting from the whole or any part of the statutory
duty of Customs subject to certain conditions to be fulfilled before or after
clearance of the goods as may be specified in such notification.
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A.
As per the new procedure called the “Customs (Import of Goods at Concessional Rate of Duty for
Manufacture of Excisable Goods) Rules, 1996” an importer who
intends to avail of the benefit of an exemption notification specifying the use
of the goods obtain a registration from the Assistant Commissioner / Deputy
Commissioner of Central Excise having jurisdiction over his factory. He should make an application giving the
details of the import such as quantity, value, notification number, port of
import, etc., to the Assistant Commissioner / Deputy Commissioner of Central
Excise and execute a bond with surety or security. The Assistant Commissioner / Deputy
Commissioner of Central Excise countersigns the application certifying regarding
registration, execution of bond, etc.
The application so certified shall be submitted by the importer to the
Assistant Commissioner / Deputy Commissioner of Customs at the port of Import
who shall allow the benefit of the exemption notification to the importer. After
clearance of the goods the Assistant Commissioner / Deputy Commissioner of
Customs shall forward a copy of the Bill of Entry Containing the particulars of
imports to the jurisdictional Assistant Commissioner / Deputy Commissioner of
Central Excise who shall acknowledge the receipt of the intimation. Thereafter,
the Assistant Commissioner of
Central Excise Shall monitor the usage of the goods imported for the intended
purpose and if they are not so used the differential amount of duty shall be
recovered.
The importer shall maintain a simple account,
Bill of Entry wise, to show that the goods imported are consumed for the
intended purpose.
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Q4. What are the exemptions granted under
sub-section (2) of Section 25 of the Customs Act, 1962 ?.
A.
If the Central Government is satisfied it may exempt any goods from
payment of duty by issue of a special Order in each case under circumstances of
exceptional nature. Such special
orders are commonly known as ‘Ad hoc exemption Orders’. Special orders so issued
specify the name of the importer, details of the goods including value and the
quantity, period of import, etc, Customs (Import
of goods at Concessional rate of duty for manufacture of excisable goods) Rules,
1996.
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