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TMI BlogAdvance Authorization scheme - violation of pre-import condition - Permission to claim of refund or input credit - Detailed procedure and directions issued - Implementation of Hon'ble Supreme Court direction in judgment dated 28.04.2023 [UOI and others vs. Cosmo Films Ltd.]X X X X Extracts X X X X X X X X Extracts X X X X ..... on of Hon'ble Supreme Court direction in judgment dated 28.04.2023 in matter of Civil Appeal No. 290 of 2023 relating to 'pre-import condition' - Reg. Attention is invited to Hon'ble Supreme Court judgment dated 28.04.2023 in matter of Civil Appeal No. 290 of 2023 (UOI and others vs. Cosmo Films Ltd.) relating to mandatory fulfillment of a 'pre-import condition' incorporated in para 4.14 of FTP 2015-20 vide the Central Government (DGFT) Notification No. 33/2015-20 dated 13.10.2017, and reflected in the Notification No. 79/2017-Customs dated 13.10.2017, relating to Advance Authorization scheme. 2. The FTP amended on 13.10.2017 and in existence till 09.01.2019 had provided that imports under Advance Authorization for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Out-of-Charge (OOC) to the goods. In this situation, duties can be paid only through a TR-6 challan. (b) Under GST law, the BE for the assessment of integrated tax/ compensation cess on imports is one of the documents based on which the input tax credit may be availed by a registered person. A TR-6 challan is not a prescribed document for the purpose. (c) The nature of facility in Circular No. 11/2015-Cus (for suo moto payment of customs duty in case of bona fide default in export obligation) is not adequate to ensure a convenient transfer of relevant details between Customs and GSTN so that ITC may be taken by the importer. (d) The section 143AA of the Customs Act, 1962 provides that the Board may, for the purposes of facilitation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be applied once to a BE. 6.1 Accordingly, the input credit with respect to such assessed BE shall be enabled to be available subject to the eligibility and conditions for taking input tax credit under Section 16, Section 17 and Section 18 of the CGST Act, 2017 and rules made thereunder. 6.2 Further, in case such input tax credit is utilized for payment of IGST on outward zero-rated supplies, then the benefit of refund of such IGST paid may be available to the said registered person as per the relevant provisions of the CGST Act, 2017 and the rules made thereunder, subject to the conditions and restrictions provided therein. 7. The Chief Commissioners are expected to proactively guide the Commissioners and officers for ironing out any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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