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TMI Blog2025 (4) TMI 1100X X X X Extracts X X X X X X X X Extracts X X X X ..... st towards interest is assailed in this appeal to the extent it holds that interest was payable on the IGST paid imported goods after a delay and the amount paid as interest was appropriated. 2. The facts which led to the issue of the impugned order are that the appellant had imported and cleared goods using 13 Advance Authorisations without paying either the basic customs duty [BCD] or the integrated goods and services tax [IGST] on them. The Directorate General of Revenue Intelligence [DRI] investigated the matter and found that while the appellant had correctly availed exemption from BCD, it had wrongly claimed exemption from IGST because exemption from IGST under the scheme was available subject to 'actual user' condition which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as already been decided by this Tribunal and the order of this Tribunal still holds the field and it has not been stayed or set aside by any higher court, there is no reason to adjourn the matter. 7. After considering the submissions of both sides, we proceed to decide the matter. 8. We have heard both sides at length and perused the records. The submission of the learned counsel for the appellant is that IGST levied on goods which are imported is an additional duty of Customs and therefore, the judgment in Mahindra and Mahindra would apply. 9. In our Final Order in the earlier appeal, we had examined at length the nature of IGST levied on imports and held that it is not an additional duty of Customs and since interest is payable on IG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate List. 12. Thus, Parliament can only levy taxes which are covered by the Union List (List I) and State legislatures can levy taxes which are covered by the State List (List II). Duties of Customs are covered by entry 83 of list I and the Union can levy them. They could be levied on imports or on exports. They could be basic customs duties or additional duties of Customs or other forms of Customs duties such as anti-dumping duty, safeguard duty, countervailing duty, etc. 13. Goods and Services Tax, on the other hand, is neither in the Union List (List I) nor in the State List (List II) nor in the concurrent list (List III) nor is it covered by Article 246. The power to levy GST was conferred by inserting a new Article 246A in the Cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es in the course of international trade). If there is no supply, there is no scope to levy IGST even if goods are imported. 17. Thus, the taxable event for levy of Customs duties is the act of importation while the taxable event for levy of IGST is the supply in the course of international trade. Accounting and use of Customs duties and IGST 18. As per Article 266 of the Constitution, all Revenues collected by the Central Government shall form part of the Consolidated Fund of India along with certain other amounts. Duties of Customs also are credited to the Consolidated Fund of India accordingly. The Customs duties become part of divisible pool of taxes which are divided between the Centre and States as per the recommendations of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies 5.02. Export Duty 0037 5.03. Cesses on Exports 0037 5.04. Other Receipts 0037 5.05. Sale of Gold by Public Auction 0037 5.06. Sale Proceeds of Confiscated Goods 0037 5.07. Customs Duty on Gold 0037 5.08. Receipt of advance payment of Assesses 0037 5.09. Safeguard Duty 0037 5.10. Road and Infrastructure Cess 0037 5.11. Anti-dumping Duty 0037 Total-Customs 8. Goods and Services Tax (GST) 8.01. Central Goods and Services Tax (CGST) 0005 8.02. Integrated Goods and Services Tax (IGST) 0008 8.03. GST Compensation Cess 0009 Total-Goods and Services Tax (GST)." Charging sections 21. Section 12 of the Customs Act, 1962 is the charging section for basic customs duties. Additional duties of custo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of List I (Union List) of the Seventh Schedule to the Constitution. IGST is levied on the supply in the course of imports under section 3 of the Customs Tariff Act, 1975 read with Section 5 of the IGST Act in exercise of the powers under Article 269 of the Constitution. While Additional duty of Customs gets credited to the Consolidated Fund of India and the divisible pool of tax revenues divided between the States and Union as per the recommendations of the Finance Commission, IGST does not get credited to the Consolidated Fund of India and gets divided between the State and Union as decided by the Parliament on the recommendations of the GST Council. 25. Therefore, whatever rate of tax and interest apply to IGST in the course of inter-st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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