Notification No. 46/2017 ' Customs
New Delhi, the 30th June, 2017
G.S.R. (E).-In exercise of the +++
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prespects things done or++++++++++ when re- imported into India, from so much of the duty of customs leviable thereon which is specified in the said First Schedule, and the whole of the additional duty, integrated tax , compensation cess leviable thereon respectively under sub-sections (1), (3), (5), (7) and (9) of section 3 of the said Customs Tariff Act as is in excess of the amount indicated in the corresponding entry in column (3) of the said Table.
This notification exemt Tax to levied in excess to the shown in column no 3 of the table given in the notification It means tax is to be paid to the extent given in column no 3because the amount over to it (excess) is exempted
The column three is in corresponding to column no 2 now coming to your case .It is covered under 1(d) The relevant portion of the same is as follow
Table
Sno | Description | Condition |
1(d) | under bond without payment of Central Excise duty |
amount of Central Excise duty not paid;
|
If you will deduct the duty not paid which is 12.5% from the total import duty then levy will be 12.5% and the excess over it is exempt So your customer is correct. (Reply Dt. 05/01/2018)