Reduction import duty on edible oils exemption for Yellow Peas - dated 30 May 2025

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Reduction import duty on edible oils exemption for Yellow Peas - dated 30 May 2025

Reduction import duty on edible oils exemption for Yellow Peas - dated 30 May 2025

The Central Government has amended Notification No. 50/2017-Customs, dated 30 June 2017 to reduce the BCD on crude soya bean oil (CTH 1507 1000), crude sunflower oil (CTH 1512 1110) and crude palm oil (CTH 1511 1000) from 20% to 10%. Further, Notification No. 64/2023-Customs, dated 7 December 2023 is also amended to extend the exemption on imports of Yellow Peas (CTH 0713 1010) from 31 May 2025 to 31 March 2026. The notification shall come into force with immediate effect.
The taxpayer contended that section 56(2)(viia) was introduced as an anti-abuse provision. The legislative history links section 56(2)(viia) to section 56(2)(vii)—which clearly applies only to capital assets. Accordingly, section 56(2)(viia) should not apply to genuine business transactions involving trading stock.
The Mumbai Bench of the Tribunal accepted the taxpayer’s interpretation, relying on legislative intent, CBDT circulars, and judicial precedents.
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