2018 (7) TMI 2070 - HC - Customs

Levy of IGST on imported goods - Import under Advance authorization scheme - the bill of entry was not being assessed either on self assessment, provisional assessment or reassessment - HELD THAT - On 13.10.2017 pursuant to a press release, the respondent extended benefit of exemption notification which had hitherto prevailed to levies under the Integrated Goods and Service Tax (IGST). That levy did not exist at the time the amended customs notifications were issued i.e. 29.06.2017. Identical issue decided in the case of JINDAL DYECHEM INDUSTRIES (P) LTD. VERSUS UNION OF INDIA OTHERS 2017 (10) TMI 693 - DELHI HIGH COURT where it was held that in view of the press release dated 6th October 2017, which prima facie makes no distinction as regards the Advance Authorisations (AA) issued prior to or after 1st July 2017, the Petitioner will not hereafter be required to pay IGST in respect of the imports of gold bars made by it Petitioner in terms of the AAs issued to it. Petition disposed off.

Summary

Issues Involved:
1. Petitioner's unawareness of an earlier court order.
2. Assessment of bill of entry not being done.
3. Requirement for the respondents to obtain instructions.
4. Direction regarding payment of IGST in respect of imported goods.
5. Benefit of exemption notification under IGST.
6. Verification of export obligations pursuant to an advance license.
7. Timeframe for completion of verification and consequential orders.

Analysis:
1. The Court initially noted the petitioner's lack of knowledge about a previous court order but observed that the bill of entry was not being assessed. This led to a direction for the respondents to seek instructions.

2. Subsequently, the Court was made aware of an earlier order in a related case regarding the payment of IGST for imported goods. The Court directed that the petitioner was not required to pay IGST based on the circumstances of the case.

3. In a related case, the Court disposed of a petition after the respondent extended the benefit of an exemption notification for levies under IGST. The Court emphasized the importance of verifying whether the petitioner fulfilled export obligations and set a timeframe for completing the necessary assessments.

4. Given the identical facts of the present case to the related case, the Court disposed of the present writ petition and pending application in line with the operative portion of the order in the related case.

5. The judgment highlights the importance of ensuring compliance with export obligations and the need for proper verification by the authorities within a specified timeframe to determine the appropriate course of action.

6. The Court's decision underscores the significance of timely assessment and verification processes in matters related to customs duties and tax exemptions, emphasizing the need for adherence to legal provisions and fulfillment of obligations to avoid further legal action.