Eligibility of various exemptions benefits/tax incentives under Customs Law

India being a developing country welcomes more investors, market access and expansion, development of infrastructure. To achieve such goals, India provides tax incentives or tax exemption under certain conditions. India offers various incentives such as tax holidays, investment allowances, tax credits, rebates and so on. Various goods are exempted under Customs notification notified from time to time by the government. The Supreme Court in a recent judgment has pronounced that exemption notification should be interpreted strictly; the burden of proving applicability would be on the assessee to show that his case comes within the parameters of the exemption clause or exemption notification. ASAV Attorney & Advisors has a specialised Customs Team which assists the assessee in choosing the correct procedures and legitimate benefits and our proficient research team keep them updated about various exemption and tax incentives.

Classification of Goods under Customs Act

The goods which are being imported or exported are subject to levy of duties under Customs Act. Classification of Goods becomes important and is essential to determine the rate of duty of the subject good. Classification of goods for importation and exportation is governed and regulated by The Customs Tariff Act, 1975. The said statute has two schedules, first schedule specifies the nomenclature that is based on the Harmonized Commodity Description and Coding System generally referred to as “Harmonized System”, developed by the World Customs Organization (WCO) which is applied uniformly by more than 137 countries, while the Second Schedule contains description of goods chargeable to export duty. As the nomenclature also specifies the Customs duty rates (Tariff), it is called the ‘Indian Customs Tariff’ or ‘Tariff Schedule’. Generally, the duty rate on exports are nil except few, while different rates duty are levied for different goods for import. It is very important to know the exact rate of duty of the specified goods for importation. A wrong classification may lead to higher duty, denial of exemptions and concessions and corresponding imposition of demand, fine, penalties and other penal provisions. Asav Attorney & Advisors (AAA) has a competent team of Professionals including few retired officers, which shall assist in correct classification of goods to avail proper exemption, concessions, if any for that specified goods in respect of import and export, which would save extra burden of duty.

Refund on excess Customs Duty paid

There might be a situation where the Importer/Exporter has paid extra Customs Duty due to mistake or oversight. In this scenario, the importer/exporter may get a refund of the excess duty paid within a stipulated time. In case the same is not paid within the stipulated time, he is entitled for refund of duty with an interest. To get a refund of duty, the Importer/Exporter is required to file a Refund Application before the Jurisdictional Customs Authority having its jurisdiction where the import/export have taken place in time bound manner. A competent team of ASAV Attorneys & Advisors (AAA) can assist in drafting of a refund application and every other process in getting the refund including associated Litigations.