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Indirect Tax Laws

Notes Government proves that import of such goods in India at such low prices causes material injury
to Indian Industry.

Protective Duty

If the Tariff Commission set up by law recommends that in order to protect the interests of
Indian Industry, the Central Government may levy protective anti-dumping duties at the rate
recommended on specified goods. The notification for levy of such duties must be introduced in
the Parliament in the next session by way of a bill or in the same session if Parliament is in
session. If the bill is not passed within six months of introduction in Parliament, the notification
ceases to have force but the action already undertaken under the notification remains valid. Such
duty will be payable upto the date specified in the notification. Protective duty may be cancelled
or varied by notification. Such notification must also be placed before Parliament for approval
as above.

Duty on Bounty Fed Articles

In case a foreign country subsidises its exporters for exporting goods to India, the Central
Government may import additional import duty equal to the amount of such subsidy or bounty.
If the amount of subsidy or bounty cannot be clearly deter mined immediately, additional duty
may be collected on a provisional basis and after final determination, difference may be collected
or refunded, as the case may be.

Export Duty

Such duty is levied on export of goods. At present very few articles such as skins and leather are
subject to export duty. The main purpose of this duty is to restrict exports of certain goods. The
Central Government has been granted emergency powers to increase import or export duties if
the need so arises. Such increase in duty must be by way of notification which is to be placed in
the Parliament within the session and if it is not in session, it should be placed within seven days
when the next session starts. Notification should be approved within 15 days.

8.2 Acts under the custom duty

The Acts under the custom duty in India:

 Foreign Trade (Exemption from Application of Rules in Certain Cases) Order, 1993
 Customs Act, 1962

 Customs Tariff Act, 1975
 Foreign Trade (Development and Regulation) Act, 1992
 Taxation Laws (Amendment) Act, 2006

 Provisional Collection of Taxes Act, 1931
 Central Excise Tariff Act, 1985

 Foreign Trade (Regulation) Rules, 1993
 Central Excise Act, 1944

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