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TMI Blog2024 (12) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... relying on the above notification. The notification offers conditional exemptions from customs duties for certain goods imported temporarily for events such as exhibitions, fairs, conventions, and similar gatherings, including trade shows and demonstrations. This exemption helps companies avoid high customs duties on goods that are not intended for permanent sale or use in India but are displayed temporarily. The permissibility of claim for Input Tax Credit (ITC) by R.V. Hydraulic Services on the Integrated Goods and Services Tax (IGST) paid for imported machinery can be determined based on the statutory documentary requirements - The essential documentary requirements and the conditions to claim ITC are enumerated under section 16 of CGST act read with Rule 36 which apply mutadis mutandis under IGST. In the present scenario the claim for ITC by the applicant must have such essential documentation in their name to establish entitlement. Here, the Bill of Entry was in the name of M/s Promau SRL, C/o IMTEX and out of charge has been issued for the aforesaid goods. Section 16 (2)a read with Rule 36 (1) d of the provisions of APGST Act, 2017 and Sec 20 of IGST act. Rule 36 (1) (d) sti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t shells, and other custom-formed components for supply to various industries. The company with advanced machinery emphasizes stringent quality standards, ensuring each parties crafted accurately to client specifications, working with a wide range of materials for custom designs. The Applicant placed a purchase order on M/s Promau SRL, Italy, a foreign supplier for 4 Rolls Davi MCB F30 (built year 2022) with specific inclusions as mentioned in the said purchase order on September 29, 2023, which is confirmed on November 8, 2023, for a total cost of EURO 80,000. The company initially paid EURO 8,000 through HDFC foreign remittance on December 5, 2023 to Promau SRL, Italy. Meanwhile, the machinery was imported to India by Promau SRL c/o IMTEX show Bangalore, INDIA on December 18, 2023, under Bill of Entry No. 9280751. As M/s Promou SRL is not having any GST registration in India, the machinery was cleared from Customs by M/s RE Rogers India Pvt. Ltd by quoting Customs Notification 08/2016, dt. 05-12-2016 which exempts importers from payment of applicable duties as the same is imported for Exhibition purpose and is to be returned. The Machinery which was imported for exhibition purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dmissibility of the application: The question raised as above appeared to fall under section 97 (2) (d) of CGST/SGST Act, 2017 and the same is extracted here under as: 97 (2) (d) admissibility of input tax credit of tax paid or deemed to have been paid; The application, is admitted as no proceedings on the same is pending, and the applicant has paid required Rs. 5,000/- under SGST CPIN: No: 24093700022028 Dt:13-09-2024 and Rs. 5,000/-under CGST CPIN No: 24083700154475 dt:31-08-2024. 6. Applicant's Interpretation of Law Or Facts Of the Case As Submitted By The Applicant: We paid Integrated Tax Rs. 14,23,964/- on 05-03-2024 through TR-6 Challan to Govt vide Challan No - 050347458. As per Section 16 of CGST Act, 2017, We received machinery and paid applicable duties to the Government. This machinery we had purchased is for Business Purpose. 7. Personal Hearing: A personal hearing notice was fixed on October 21, 2024.The applicant's authorised representative Mr. M. Nagesh, Manager at M/s Kireeti Indenting Exim Services Pvt Ltd, has appeared through authorization letter. The authorized person presented the following submissions: The machinery has come for exhibition purpose in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxpayer on the eligibility of the taxpayer's claim of ITC on TR6 challan is taken up for discussion and analysis. For ease of reference the following legal provisions are reproduced herein as noted below. Section 5 of IGST Act, 2017 stipulates Levy and Collection provisions. The relevant portion is as noted below: (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the integrated goods and services tax on all inter-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the Central Goods and Services Tax Act and at such rates, not exceeding forty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person: Provided that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 on the value as 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. Supply as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss the taxpayer: Is in possession of a Tax Invoice or Debit note or such other taxpaying documents as may be prescribed. Has received the goods or services or both Tax charged in respect of such supply has been actually paid to the government. Has furnished the return under Section 39. In addition as per Section 16(4) the last date for availment of ITC for particular financial year is due date of furnishing GSTR-3B for the month of September/ November of next year or relevant annual return whichever is earlier. Rule 2 (62) of APGST rules 2017 stipulates that the term Input Tax includes Integrated Tax paid on Imports. Rule 36. provides for Documentary requirements and conditions for claiming input tax credit.- The input tax credit shall be availed by a registered person, including the Input Service Distributor, on the basis of any of the following documents, namely,- (a) an invoice issued by the supplier of goods or services or both in accordance with the provisions of section 31; (b) an invoice issued in accordance with the provisions of clause (f) of sub-section (3) of section 31, subject to the payment of tax; (c) a debit note issued by a supplier in accordance with the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment. The goods must solely be used for display or demonstration purposes, without any intent for sale during the exhibition. M/s. Promau SRL, C/o IMTEX imported the Davi Full Hydraulic Plate Roll under this notification to display it at the IMTEX exhibition from January 19-23, 2024. The exemption notification allowed M/s Promau SRL C/O INTEX to bring the equipment into India without immediate customs duty payments. The goods are generally cleared through a bond executed with customs. Any exemption claimed requires documentation, such as import invoices, Bill of Entry, and evidence that the goods are for exhibition purposes. This exemption under Notification 08/2016 applies only to temporary imports and is subject to scrutiny. M/s Promau SRL, not being registered for GST in India and a foreign supplier could import the machine under this exemption without affecting its tax status in India, adhering to the re-export requirement. The Bill of Entry was in M/s Promau SRL's name, C/o IMTEX and not The the Applicant and out of charge issued on the goods imported. Under Section 16(2) (a) read with rule 36(1) (d) of the CGST Act, a claimant for ITC should have relevant documents lik ..... X X X X Extracts X X X X X X X X Extracts X X X X
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