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a. Absolute exemption from the whole of customs duty i.e., exemption from the levy of Customs duty.
b. Exemption granted from levy in excess of a specified rate, which is, in effect, a reduction in the rate of tax which is distinct from exemption as normally / commonly understood.
c. Exemption against duty credit scrips.
7.11. While the first category of notifications referred to above results in exemption from the levy, the second category of notifications results in reduction in the rate of tax and the levy continues to operate, while the third https://www.mhc.tn.gov.in/judis W.A.Nos.830 and 831 of 2020 category of notifications is grant of exemptions against credit scrips.
(i) Merchandise Exports from India Scheme (MEIS).
(ii) Service Exports from India Scheme (SEIS).

3.02 Nature of Rewards Duty Credit Scrips shall be granted as rewards under MEIS and SEIS. The Duty Credit Scrips and goods imported/domestically procured against https://www.mhc.tn.gov.in/judis W.A.Nos.830 and 831 of 2020 them shall be freely transferable. The Duty Credit Scrips can be used for:

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3.07 Objective Objective of Service Exports from India Scheme (SEIS) is to encourage export of notified Services from India.

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3.15 CENVAT / Drawback Additional Customs duty / excise duty / Service Tax paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications. Basic Custom duty paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per DoR rules or notifications.

(emphasis supplied) 7.50. A reading of the above provisions of the FTP would show that duty credit scrips under MEIS and SEIS schemes can be used for payment of customs duty, for import of inputs or goods subject to exceptions. Further, debit under duty scrip is capable of being adjusted as CENVAT credit or duty drawback. Basic customs duty paid through debit under duty credit scrips shall be adjusted for Duty drawback.