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TMI Blog2021 (1) TMI 430X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of Section 3 and anti-dumping duty under Section 9A are exempted under Notification No.79/2017-Cus dated 13.10.2017 - the applicant is opting to pay IGST on their imports, but avails exemption on other applicable customs duties in terms of the Notification No.79/2017-Cus dated 13.10.2017. Thus, the applicant has received (imported) the goods on which the tax (IGST) has been paid and, therefore, according to them, they cannot be held to have availed the benefits of the Notification No.79/2017-Cus dated 13.10.2017 , as contemplated in Rule 96(10) of CGST Rules, 2017. Further, the exemption on additional duties of Customs and anti-dumping duty are governed by the Customs Act, 1962 as well as Customs Tariff Act, 1975 and cannot be denied by the GST Act, 2017 and the Rules made thereunder. Consequently, according to them, they can export the goods on payment of IGST and claim refund thereof under Rule 96(10) of the CGST Rules, 2017. The availing exemption under Notification No.79/2017-Cus dated 13.10.2017 in respect of additional duty of Customs under sub-Section (1), (3) and (5) of Section 3, anti-dumping duty under section 9A, but opting to pay IGST on the import of goods unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 01.04.2015 and additional duty of customs under Sub-sections (1), (3) and (5) of Section 3, Integrated GST under Sub-section (7) of Section 3 and anti-dumping duty under Section 9A are exempted under Notification No.79/2017-Cus dated 13.10.2017. As per condition No. (vi) (a) of the Notification No.18/2015-Cus, if the goods are imported after the discharge of export obligation in full, and if the facility of input tax credit under GST law on inputs used for manufacture and supply of goods exported has been availed, then the importer, at the time of clearance of imported material, is required to furnish a bond binding himself to use the imported materials in his factory for the manufacture and supply of taxable goods (other than nil rated or fully exempt supplies) and submit a certificate from a chartered accountant within six month from the date of clearance of the said materials to the effect that the said imported materials have been used. Further, as per the proviso to this condition, if the importer pays integrated tax leviable on the imported materials but for the exemption contained herein, then such imported materials may be cleared without furnishing a bond specified in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d anti-dumping duty are governed by the Customs Act, 1962 as well as Customs Tariff Act, 1975 and cannot be denied by the GST Act, 2017 and the Rules made thereunder. Consequently, according to them, they can export the goods on payment of IGST and claim refund thereof under Rule 96(10) of the CGST Rules, 2017. 4.2 The applicant has further submitted that further to clarify, w. e. f. 10.01.2019, vide Notification No. 01/2019-Cus dated 10.01.2019, pre-import condition has been removed, resulting in granting exemption from payment of IGST on imports under advance authorization irrespective of whether the import is pre-import based or otherwise. However, for, the imports after discharge of export obligation in full, a condition of furnishing CA certificate confirming the use of such imported goods for manufacture and supply of taxable goods has been specified. Since, they have a huge volume of imports and exports, it is very inconvenient for them to get CA certificate for every import consignment and submit to Customs, they have opted to pay IGST on all the imports under Advance Authorization and avail input tax credit thereon. Thus, the exemption from payment of IGST on imports ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icultural applications of having a prestigious 4-Star Export House Status granted by the Ministry of Commerce. The applicant exports almost 85% of the production to various countries of the world. The applicant imports various raw materials under Advance Authorization scheme in which basic customs duty is exempted in terms of Notification No. 18/2015-Cus dated 01.04.2015 and additional duty of customs under Sub-sections (1), (3) and (5) of Section 3, Integrated GST under Sub-section (7) of Section 3 and anti-dumping duty under Section 9A are exempted under Notification No.79/2017-Cus dated 13.10.2017. 8.1 Further, the applicant is opting to pay IGST on their imports, but avails exemption on other applicable customs duties in terms of the Notification No.79/2017-Cus dated 13.10.2017. Thus, the applicant has received (imported) the goods on which the tax (IGST) has been paid and, therefore, according to them, they cannot be held to have availed the benefits of the Notification No.79/2017-Cus dated 13.10.2017 , as contemplated in Rule 96(10) of CGST Rules, 2017. Further, the exemption on additional duties of Customs and anti-dumping duty are governed by the Customs Act, 1962 as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b-rule (10) to state that the persons claiming the rebate option should not have received supplies on which the supplier has availed the certain export benefits of any of the notifications specified in the said rule, which reads as under: 96(10). The persons claiming refund of integrated tax paid on exports of goods or services should not have received supplies on which the supplier has availed the benefit of the Government of India, Ministry of Finance, notification No. 48/2017- Central Tax dated the 18th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3 Sub-section (i), vide number G.S.R 1305 (E) dated the 18th October, 2017 or notification No. 40/2017-Central Tax (Rate) 23rd October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1320 (E) dated the 23rd October, 2017 or notification No. 41/2017-Integrated Tax (Rate) dated the 23rd October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321 (E) dated the 23rd October, 2017 or notification No. 78/2017-Customs dated the 13th October, 2017 published in the Gazette of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the CGST Rules: 5.1 Rule 96(10) of the CGST Rules, as amended retrospectively by notification No. 39/2018-Central Tax, dated 04.09.2018 provides that registered persons, including importers, who are directly purchasing/importing supplies on which the benefit of reduced tax incidence or no tax incidence under certain specified notifications has been availed, shall not be eligible for refund of integrated tax paid on export of goods or services. For example, an importer (X) who is importing goods under the benefit of Advance Authorization/EPCG, is directly purchasing/importing supplies on which the benefit of reduced/Nil incidence of tax under the specified notifications has been availed. In this case, the restriction under rule 96(10) of the CGST Rules is applicable to X. However, if X supplies the said goods, after importation, to a domestic buyer (Y), on payment of full tax, then Y can rightfully export these goods under payment of integrated tax and claim refund of the integrated tax so paid. However, in the said example if Y purchases these goods from X after availing the benefit of specified notifications, then Y also will not be eligible to claim refund of integrated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321 (E), dated the 23rd October, 2017 or notification No. 78/2017-Customs, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1272(E), dated the 13th October, 2017 or notification No.79/2017-Customs, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1299 (E) dated the 13th October, 2017. . 11. In view of the above, we hold that the availing exemption under Notification No.79/2017-Cus dated 13.10.2017 in respect of additional duty of Customs under sub-Section (1), (3) and (5) of Section 3, anti-dumping duty under section 9A, but opting to pay IGST on the import of goods under Advance Authorization, would tantamount to availing the benefits of exemption under Notification No.79/2017-Cus dated 13.10.2017, as contemplated under Rule 96(10) of CGST Rules, 2017. Consequently, the applicant is not eligible to claim refund thereof under Rule 96(10) of CGST Rules, 2017, as amended. 12. In the light of the aforesaid circumstances, we rule as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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