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TMI Blog2024 (10) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... o be valid and intra vires. Also it is an admission of appellant itself that pre-import conditions were not fulfilled by the appellant. Though the plea taken to be a bonafide mistake but today it stands established that appellant was not entitled for availing IGST exemption under Advance Authorization. The said amount of IGST was paid voluntarily at a later date subsequent to the re-assessment of 18 Bill of Entries. Coming to the decision in the case of Mahindra Mahindra [ 2022 (10) TMI 212 - BOMBAY HIGH COURT] , it is held that present is the case where interest on late payment of IGST is prayed to be refunded whereas in the said case (Mahindra Mahindra) the refund claim was filed about amount of interest paid alongwith additional duty of customs which was paid at the date later than the relevant date. IGST on imports is not additional duty of customs hence the logic arrived at by Bombay High Court (affirmed by Hon ble Supreme Court) is not applicable to the interest on IGST. The opinion is based on following discussion on statutory provisions. The liability of the appellant to pay interest on delayed payment of IGST was automatic. The appellant is not entitled to claim the refund ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been accepted initially vide Order-in-Original No.18/2019 -20 dated 15.02.2020. The appeal against the said order has been rejected vide the Order-in Appeal / the Order challenged vide the present appeal. Being aggrieved, the appellant is before this Tribunal. 4. We have heard Mr. Yash Dhadda, ld. Counsel for the appellant and Mr. Girijesh Kumar, Departmental Representative for the Department. 5. That the appellant at first instance, while importing goods under the exemption notifications No.18/2015 dated 01.04.2015 claimed exemption of IGST. However later it requested the proper officer for re-assessment of already assessed (self-assessed) Bills of Entry and paid IGST on the reassessed value. However, it had to pay the interest at ICEGATE auto-calculated by the system. The amount of interest paid in respect of 18 Bills of Entry at the given port was Rs.7,95,164/-only. Since interest was not payable as per law, in its understanding appellant applied for manual refund of interest paid. The Department issued a Show cause notice dated 21.09.2019 proposing rejection of refund claim and bar of unjust enrichment otherwise than on merits. 6. That the learned adjudicating authority, pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Cosmo Films Ltd. as per decision dated 28.04.2023 has accepted the appeal filed by the Revenue against the order based by Hon ble Gujarat High Court in the case of M/s. Maxim Tubes Company Pvt. Ltd. vs. Union of India reported as 2019 TIOL 459 High Court, Hyderabad, has been accepted. The pre-import condition in Notification No.79/2017 dated 13.10.2017 has been held to be valid and intra vires. With these submissions, ld. DR has impressed upon that there is no infirmity in the order under challenge. The appeal is prayed to be dismissed. 11. Having heard the rival contentions, perusing the record following are observed to be the admitted facts:- 1) The appellant had claimed the IGST exemption while importing the goods vide 18 number of Bills of Entry. 2) Appellant is self-evaluated that the requisite Notification is subject to pre-import condition which appellant was not following. 3) Pursuant to said evaluation the appellant had requested for re-assessment of all those Bill of Entries. 4) The appellant had paid the amount of IGST on the re-assessed value voluntarily. 5) The amount of Rs.7,95,166/- was paid as interest on the amount of IGST paid. 12. The dispute is that the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mayur Uniquoters Limited and others which has been held as follows:- 13. Duties of Customs are levied under the powers of Union under Article 246 read with entry 83 of List I (Union List) of the Seventh Schedule. These read as follows: 246. Subject-matter of laws made by Parliament and by the Legislatures of States (1) Notwithstanding anything in clauses (2) and (3), Parliament has exclusive power to make laws with respect to any of the matters enumerated in List 1 in the Seventh Schedule (in this Constitution referred to as the Union List ). (2) Notwithstanding anything in clause (3), Parliament and subject to clause (1), the Legislature of any State also, have power to make laws with respect to any of the matters enumerated in List III in the Seventh Schedule (in this Constitution referred to as the Concurrent List ). (3) Subject to clauses (1) and (2), the Legislature of any State has exclusive power to make laws for such State or any part thereof with respect to any of the matters enumerated in List II in the Seventh Schedule (in this Constitution referred to as the 'State List'). (4) Parliament has power to make laws with respect to any matter for any part of the terr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce. Explanation. The provisions of this article, shall, in respect of goods and services tax referred to in clause (5) of article 279A, take effect from the date recommended by the Goods and Services Tax Council. 18. Article 269A provides for apportionment of IGST between the Union and States as provided by the Parliament on the recommendations of the Goods and Services Tax Council. It also has an explanation according to which the supply in the course of importation is deemed to be inter-state supply. This article is reproduced below. Article 269A- Levy and collection of goods and services tax in course of inter-State trade or commerce 1) Goods and services tax on supplies in the course of inter-State trade or commerce shall be levied and collected by the Government of India and such tax shall be apportioned between the Union and the States in the manner as may be provided by Parliament by law on the recommendations of the Goods and Services Tax Council. Explanation. For the purposes of this clause, supply of goods, or of services, or both in the course of import into the te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , sales tax, local taxes and other charges. (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 Tax 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 (52 of 1962), be the aggregate of (a) the value of the imported article determined under sub-section (1) of section 14 of the Customs Act, 1962 (52 of 1962) or the tariff value of such article fixed under sub-section (2) of that section, as the case may be; and (b) any duty of customs chargeable on that article under section 12 of the Customs Act, 1962 (52 of 1962), and any sum chargeable on that article under any law for the time being in force as an addition to, and in the same manner as, a duty of customs, but does not include the tax r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 31. When interest is payable on delayed payment of IGST on inter-state supplies within India, the same bill also apply to delayed payment of IGST on imports. This is especially so since section 3 of the Customs Tariff Act makes IGST payable under IGST Act. We find no legal basis or reason to hold that the interest payable on delayed payment of IGST does not apply if such delayed payment is on supply in the course of imports. 15. We find no reason to take a different view in this case as the issue is identical. We, therefore, find that: a) IGST is not an additional duty of Customs. The taxable event for levying any duty of Customs is the act of importation or exportation. The taxable event for levying IGST, on the other hand, is the supply in the course of in the course of inter-state trade. By virtue of the explanation to Article 269A of the Constitution of India, inter-state supply includes supply in the course of international trade and hence IGST is charged on such supplies. b) The charging section for levy of IGST on the imported goods is Section 3(7) of the Customs Tariff Act read with section 5 of the IGST Act, 2017. The rates at which the IGST is levied on imports is the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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