2017 (8) TMI 1142 - HC - GST

Denial of credit already accrued to the Petitioner on gold dore bar - Notification dated 17th August 2017 challenged - reversal of 5/6th of the CENVAT Credit which had already accrued to the Petitioner on account of payment of additional duty of customs levied under Section 3(1) of the Customs Tariff Act, 1975 paid at the time of importation of gold dore bar seeked - Held that - The Court is of the view that the Petitioners have made out a prima facie case for grant of interim relief in their favour. Further, the balance of convenience is in their favour for grant of interim relief. Accordingly, it is directed that till the next date of hearing, no coercive steps shall be taken by the Respondents to recover the credit already availed by the Petitioners. Reply, if any, be filed within three weeks. Rejoinder thereto, if any, be filed before the next date of hearing.

Summary

Issues: Challenge to impugned Notification inserting Rule 44 A in CGS Rules requiring reversal of CENVAT Credit on imported gold dore bars.

The judgment pertains to a challenge against an impugned Notification dated 17th August 2017, which inserted Rule 44 A in the Central Goods and Services Rules, 2017 (CGS Rules). The petitioners contested the insertion of this rule, which mandated the reversal of 5/6th of the CENVAT Credit accrued to them due to the payment of additional duty of customs on imported gold dore bars. The petitioners argued that they had fulfilled all conditions for the credit and that the impugned Notification was discriminatory and unreasonable, imposing higher tax burdens on imported gold dore bars compared to other goods. The petitioners sought interim relief to prevent the reversal of the credit already availed. The Court acknowledged a prima facie case in favor of the petitioners and granted interim relief, directing that no coercive steps be taken to recover the credit until the next hearing date. The Court scheduled further filings and listed the matter for a hearing on 25th September 2017.