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TMI Blog2018 (4) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... e of importation i.e. when the import declarations are filed before the Customs authorities for the customs clearance purposes for the first time. Further, value addition accruing in each such high sea sale shall form part of the value on which IGST is collected at the time of clearance - The clarification given by the CBEC in the above Circular regarding the leviability of IGST and the point of collection thereof in respect of high sea sales of imported goods is, mutatis mutandis, applicable in the case of the applicant. Ruling:- The goods are liable to IGST when they are imported into India and the IGST is payable at the time of importation of goods into India - The applicant is neither liable to GST on the sale of goods procured from China and directly supplied to USA nor on the sale of goods stored in the warehouse in Netherlands, after being procured from China, to customers, in and around Netherlands, as the goods are not imported into India at any point. - Application dated 29.01.2018 - CT/2275/18-C3 - Dated:- 26-3-2018 - Senthil Nathan S, IRS Member GST and N. Thulaseedharan Pillai Member SGST ORDER M/s. Synthite Industries Ltd, Synthite Valley, Kadayiruppu P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aised following issues for determination by the Authority; 1. Whether on procuring goods from China, in a context where the goods purchased are not brought into India, is GST payable by them? 2. On the sale of goods to the company in USA, where goods sold are shipped directly from China to USA without entering India, is GST payable by them? 3. On procuring goods 'from China not against specific export order, in a context when the goods purchased are not brought into India, is GST payable by them? 4. On the sale of goods from Netherlands warehouse to their end customers in and around Netherlands, without entering India, is GST payable by them? 5. On scrutiny of the application, it was found that applicant had only paid a fee of ₹ 5000/- whereas the applicant was required to pay a fee of ₹ 5,000/- each under the CGST and SGST Rules. 6. The applicant was granted a personal hearing on 13.03.2018. Shri. George Varghese, Senior Manager (Finance) appeared on behalf of the applicant. He submitted proof of payment of the balance fee of ₹ 5,000/- In the written submission, dated 13.03.2018, the applicant has submitted that they are engaged in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 3 of the Customs Tariff Act, 1975, on the value determined under the said Act at the point when duties of customs are levied on the said goods under Section 12 of the Customs Act, 1962. 10. The Customs Tariff Act, 1975 was amended by The Taxation Laws Amendment Act, 2017 by introducing sub-section (7) in Section 3 of the Customs Tariff Act, 1975 with effect from 01.07.2017 to enable collection of integrated tax on the goods imported. The relevant provisions of the amended Section 3 of the Customs Tariff Act, 1975 reads as follows; (7) Any article which is imported into India shall, in addition, be liable to integrated tax at such rate, not exceeding forty per cent as is leviable under section 5 of the Integrated Goods and Services Tar Act, 2017 on a like article on its supply in India, on the value of the imported article as determined under sub-section (8). (8) For the purposes of calculating the integrated tax under sub-section (7) on any imported article where such tax is leviable at any percentage of its value, the value of the imported article shall, notwithstanding anything contained in section 14 of the Customs Act, 1962, be the aggregate of- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of such entry inwards or the arrival, as the case may be. (2) The provisions of this section shall not apply to baggage and goods imported by post. From a combined reading of the above provisions of the IGST Act, 2017, the Customs Tariff Act, 1975, and the Customs Act, 1962, it is evident that the integrated tax on goods imported into India shall be levied and collected at the point when duties of customs are levied on the said goods under Section 12 of the Customs Act, 1962 i.e.-on the date determined as per provisions of Section 15 of the Customs Act, 1962. 11. When a question regarding the leviability of Integrated Goods and Services Tax [IGST] on High Sea Sales of imported goods and point of collection thereof was raised before the Central Board of. Excise and Customs [CBEC], the CBEC by Circular No. 33/2017-Customs dated 01.08.2017had clarified as follows; Subject: Leviability of Integrated Goods and Services Tax (IGST) on High Sea Sales of imported goods and point of collection thereof-regarding Reference has been received in the Board regarding clarity on Leviability of Integrated Goods and Services Tax (IGST) on High Sea Sales of imported ..... X X X X Extracts X X X X X X X X Extracts X X X X
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