TMI Blog2020 (2) TMI 1607X X X X Extracts X X X X X X X X Extracts X X X X ..... . 54(3) ibid is attracted? - HELD THAT:- The statutory provision i.e, proviso to Sec.54 (3) ibid speaks of goods which are subject to export duty'. The phrase 'subject to export deity' is equivalent to leviable to export duty', in the given context. It is not denied that the goods exported are covered under the Export Tariff as being subject to i.e., leviable to export duty, though by an exemption Notification such export duty payable is NIL. It is well-settled principle that goods being exempted or chargeable to Nil rate of duty by virtue of Notifications etc., does not remove the goods from the category of those 'leviable to duty'. In the instant case also, the exported goods are specified in the Second Schedule to the Customs Tariff Act, 1975 as subjected to export duty; while by a Notification issued under Section 25 (1) of the Customs Act, the same were exempted. Hence, the ratio of and principles laid down in the above decisions is clearly applicable, whereby the goods have to be treated as falling within the criterion ' subject to export duty' - the phrase 'subject to export duty is used in the proviso, without any qualification/restr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re rejected. - GOA/AAAR/01/2019-20/3072 - - - Dated:- 3-2-2020 - SHRI DIPAK M. BANDEKAR, AND SHRI VASA SESHAGIRI RAO, MEMBER (Under Section 101 of the Central Goods and Services Tax Act, 2017 and the Goa Goods and Services Tax Act, 2017) Unless mention is specifically made, reference to provisions under Central Goods and Services Tax Act, 2017 would also mean as a reference to the same provisions under Goa Goods and Services Tax Act, 2017. 1. The present appeal has been filed under Section 100(1) of the Central Goods and Services Tax Act, 2017 and Goa Goods and Services Tax Act, 2017 (hereinafter commonly referred to as GST Act) by M/s Chowgule and Company Private Limited, registered vide GSTIN 30AAACC5479J1ZP against the Advance Ruling No GOA/GAAR/11 of 2018 19/514 dated 03/06/2019 passed by the Authority for Advance Ruling under GST, Goa State ( AAR / lower authority ). Brief fact of the case 2.1. M/s Chowgule and Company Private Limited, Chowgule House, Mormugao Harbour, Goa 403803 (hereinafter referred to as the appellant / M/s.CCPL ) registered under the GST law having GSTIN 30AAACC5479J1ZP, filed an application under Section 97 of the Goa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses where the goods exported out of India are subjected to export duty The appellant's contention that he is not exporting goods but is exporting a service. They submitted that even presuming but not admitting that the export tantamount to export of goods, the same are not subjected to export duty as the Govt. Vide Notification No. 1/2016-Customs dated 4th January, 2016 has notified that the rate of export duty on Iron Ore Pellets is 0%. They submitted that the contention of the Advance Ruling Authority that goods exported are subjected to export duty is not correct. 5. Subsequently vide their letter Ref No. CCPL/GST/19-20/23 dated 16.01.2020, the appellant have added an additional ground of appeal. They contended that the Learned AAR has erred in holding that the appellant is liable to pay IGST on iron ore imported into India in accordance with the provisions of Section 3 of the Customs Tariff Act, 1975 read with Section 5(1) of the IGST Act, 2017. 6. An opportunity of personal hearing was accorded which was held on 21/01/2020 wherein the authorized representatives of the appellant reiterated their written submissions. Further, they contended that they are entitled to cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iz., Sec.54 (3) of the CGST Act, 2017 which reads as follows:- SECTION 54. Refund of tax.- (1) ................... (2) .................... (3) ....................... Provided that no refund of unutilised input tax credit shall be allowed in cases other than - (i) zero rated supplies made without payment of tax; (ii) where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council: Provided further that no refund of unutilised input tax credit shall be allowed in cases where the goods exported out of India are subjected to export duty: Provided also that no refund of input tax credit shall be allowed, if the supplier of goods or services or both avails of drawback in respect of central tax or claims refund of the integrated tax paid on such supplies. 10.4. We find that it is an admitted position of the appellant that after conversion of iron ore into pellets, the pellets are exported to the non-resident ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riff Act, they continue to be dutiable even after exemption. - The notification under Section 25(1) of the Customs Act, 1962 is issued precisely because the goods are covered by First Schedule to the Customs Tariff Act and are subject to duty of customs. The only effect of notification issued under Section 25(1) is to reduce the effective rate of duty leviable, but goods continue to be dutiable. Therefore, the issue of notification under Section 25(1) ibid does not mean that the goods in question are not chargeable to levy of duty under Section 12 of the Customs Act, 1962. [para 19] (ii) In Collector of Customs, Bombay vs New India Industries, Bombay 1985 (21) ELT. 159 (Trib), the Hon'ble Tribunal, Delhi Bench inter alia held as follows:- Exemption - Exemption Notification reduces the rate of duty but goods continue to be dutiable - Notification 364/76-Cus. - Sections 12 and 25 (1) of the Customs Act, 1962. -Any exemption notification, such as Notification No. 364-Cus., dated 2-8-1976, in the instant case, under Section 25(1) of the Customs Act, 1962 is issued precisely because the goods are covered by the First Schedule of the Customs Tariff Act and are sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubjected to export duty. 12. The above being the stated position in the statute, the appellant is not entitled to claim refund of unutilized input tax credit in cases where the goods exported out of India are subjected to export duty. 13.1. The Hon'ble Supreme Court in the case of Commissioner of Cus. (Import), Mumbai Versus Dilip Kumar Company [2018 (361) E.L.T. 577 (S.C.)] held that,- Interpretation of statutes - Statute must be construed according to the intention of Legislature........Interpretation of statutes - Words in a statute when clear, plain and unambiguous and only one meaning can be inferred, Courts bound to give effect to the said meaning irrespective of consequences - In applying rule of plain meaning any hardship and inconvenience cannot be the basis to alter the meaning to the language employed by the legislation especially in fiscal statutes and penal statutes...................... 13.2 The Hon'ble Supreme Court (Larger Bench) in the case of Union of India V/s M/s Dharmendra Textile Processors cited at 2008 (231) E.L.T. 3 (S.C.) held that,- Interpretation of statutes A statute is an edict of the legislature - Language employe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sdictional officer and the applicant. The said additional grounds of appeal filed by the appellant vide their letter Ref No. CCPL/GST/19-20/23 dated 16.01.2020 is also barred by the further extended period of limitation as contained in the proviso to Section 100(2) of the CGST Act, 2017 which provided a further period not exceeding thirty days. The said 'additional ground' has been filed on 16.01.2020 i.e. well beyond the limitation period mandated in the statute i.e. Section 100(2) of the CGST Act, 2017 as well as proviso to Section 100(2) of the CGST Act, 2017. As the additional submissions vide which the additional grounds for appeal have been preferred are hit by limitation, this Authority being bound by the statute, is not empowered to entertain the same Hence, the said 'additional ground' is rejected on the grounds of limitation, and thereby without any need to delve into the merits of the same 18. In view of the above discussion and observation, we pass the following order - ORDER (Under Section 101(1) of the Central Goods and Services Tax Act, 2017 and Goa Goods and Services Tax Act, 2017). For the reasons as discussed above, the Ruling given ..... X X X X Extracts X X X X X X X X Extracts X X X X
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