QUESTION

We were importing goods falling under HNS 22072000 under Import of Goods under concessional rate of duty Rules 2017. Concession of custom duty . Import period of 2018 to 2021 i.e. after excise regime. However, Custom Dept. issued letter instructing us to pay the differential duty as the concession is applicable only to imported goods for use in manufacture of excisable goods. The goods imported is being used for mfg. of goods on which we are paying GST ( Not excise duty). Though the matter is of interpretation, we paid the diff. duty under protest. Now, please guide if we have to file refund claim of diff duty & interest paid under protest, then is there is time period to file refund claim ? If yes, please let us know period? where to file the refund claim? format of refund claim?

ANSWER

Facts of the case:
1. Warehouse Bill of Entry date : 21.11.2018
2. Ex Bond Bill of Entry date : 22.01.2019
3. Goods imported under concessional rate of duty under IGCR during the period from 21.11.2018 to 05.10.2020.
4. Diff. custom duty paid 44.70 Lacs. Interest paid Rs. 7.53 Lacs. Duty & interest paid under protest and intimated to Custom Dept. accordingly.
5. Notification mentioned in Ex-Bond Bill of Entry : 50/2017 sr. No. 107. Print screen of BE attached.

6. Imported goods is being used in the manufacturing of goods falling under Chapter No. 2942, on which GST is being paid, ( in excise regime excise duty was being paid on the said mfged goods )

Law Applicable:
1. Customs (Import of Goods at Concessional Rate of Duty) Rules 2017
Rule 2. Application –
(1) These rules shall apply to an importer, who intends to avail the benefit of an exemption notification issued under sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and where the benefit of such exemption is dependent upon the use of imported goods covered by that notification for the manufacture of any commodity or provision of output service.
(2) These rules shall apply only in respect of such exemption notifications which provide for the observance of these rules.

2. Notification No. 50 /2017-Customs Dated 30/06/2017
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and sub-section (12) of section 3, of Customs Tariff Act, 1975 (51 of 1975), and in supersession of the notification of the
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subject to any of the conditions, specified in the Annexure to this notification, the condition number of which is mentioned in the corresponding entry in column (6) of the said Table:

Interpretation:

Notification No. 50 /2017 is issued under sub-section (1) of section 25 of the Customs Act, 1962 to give scope to Customs (Import of Goods at Concessional Rate of Duty) Rules 2017.
Column (3) specifies the product and column (6) specifies the conditions if any applicable.
You have followed the condition given in the notification but in column (3) the product is specifically permitted with a condition that the Denatured ethyl alcohol (ethanol) should be used for manufacture of excisable goods.
This notification is issued after introduction of GST. After 01/07/2017, there are certain products still covered under excise.
The imported goods should be used to manufacture these goods. Your presumption that the word excisable goods should be learned in context to the Pre-GST regime is not correct.

Conclusion:
In our opinion the exemption should not be given if the product is not used to manufacture excisable goods (Reply dt. 25/11/2021)