Background:
Earlier, the CBIC vide Notification No. 45/2017 – Customs, dated June 30, 2017 (“Notification No. 45”) issued exemption on re-import of certain goods into India from Customs duty as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (“Customs Tariff Act”), and the Integrated Goods and Services Tax (“IGST”), Compensation Cess leviable under Section 3(7) and Section 3(9) of the Customs Tariff Act respectively.
Notification
The CBIC vide Notification No. 36/2021-Customs, dated July 19, 2021 has issued amendment in Notification No. 45 in order to notify that Customs Duty, IGST and Compensation Cess would be leviable on goods exported for repairs abroad and cut, polished precious and semi-precious stones exported for treatment abroad, in a following manner:
- The words ‘Duty of customs’ has been substituted with the words ‘Said duty, tax or cess’
- Further an Explanation (d) is inserted to clarify that IGST and Compensation Cess would be leviable beside the Customs Duty, and the exemption is only from the amount of tax, cess and duty over and above the amount so calculated.
The amended portion of Notification No. 45 reads as below:
|
Sl. No. |
Description of goods |
Conditions |
|
2 |
Goods, other than those falling under Sl. No. 1 exported for repairs abroad |
Said duty, tax or cess which would be leviable if the value of re-imported goods after repairs were made up of the fair cost of repairs carried out including cost of materials used in repairs (whether such costs are actually incurred for not), insurance and freight charges, both ways. |
|
3 |
Cut and polished precious and semi-precious stones exported for treatment abroad as referred to in Paragraph 4A.20.1 of the Foreign Trade Policy, other than those falling under Sl. No. 1. |
Said duty, tax or cess which would be leviable if the value of re-imported precious and semiprecious stones after treatment were made up of the fair cost of treatment carried out including cost of materials used in such treatment, whether such costs are actually incurred for not, insurance and freight charges, both ways. |
Explanation (d) reads as under:, –
“(d) on recommendation of the GST Council, for removal of doubt, it is clarified that the goods mentioned at serial numbers 2 and 3 of the Table, are leviable to integrated tax and cess as leviable under the said Customs Tariff Act, besides the customs duty as specified in the said First Schedule, calculated on the value as specified in column (3), and the exemption, under said serial numbers, is only from the amount of said tax, cess and duty over and above the amount so calculated.”
The Notification can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2021/cs-tarr2021/cs36-2021.pdf