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TMI Blog2019 (7) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.1. The appellant submitted that by virtue of the Customs Notification No 51/ 1996 dated 23.07.1996 they were exempted from payment of Customs Duty in excess of 5% of the duty of Customs leviable as per First Schedule to the Customs Tariff Act, 1975 and also from the whole of the Additional Duty leviable under Section-3 of the Customs Tariff Act, 1975 before the introduction of Goods and Service Tax. The aforesaid Notification is applicable to the institutions specified in Column-'2' thereof for import of such specified equipments as specified in Column-'3' thereof and is subject to such conditions as specified in Column-'4' of the said notification. 2.2. It is the submission of the Appellant that they are importing Scientific Equipments either directly from Original Equipment Manufacturer or through the Agent of the OEM suppliers in India. In case of direct import, they are availing concessional Customs Duty and exemption of IGST as per NN-43/2017-Customs, DT: 30.06.2017. However, in case the same imported Equipments are procured through the OEM Agents in India, the OEM Suppliers of such Imported Equipments have charged IGST @ 28% from 01.07.2017 and IGST @ 5% with effect from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the appellant and considering their submissions vide their rulings observes/ held as follows. 4.1. The AAR, Odisha observes that proviso to Section 5(1) of the IGST Act authorizes levy of IGST on goods imported into India in accordance with the provision of Section 3 of the Customs Tariff Act 1975 and the point of taxation is same as the point of levy of customs duty. Section 2(10) of the IGST Act defines 'import of goods' meaning bringing goods into India from a place outside India. Accordingly, levy of IGST on goods imported under Proviso to Section 5(1) is strictly limited to import of goods into India and such levy has to happen at the time of customs clearance only. Hence, Notification No.51/96-Customs dated 23.07.1996 is very much applicable to the Appellant in case of import of specified goods. 4.2. The AAR, Odisha further observes that the applicability of Notification No. 51/96-Customs dated 23.07.1996 as amended vide Notification No. 43/2017-Customs, DT: 30.06.2017 to "OEM Suppliers" needs to be examined as per the facts and circumstances of the case. In this case, the OEM supplier is a supplier located in India and the supply of equipments by such supplier to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itutions and I.I.T. etc. So, by any stretch of the imagination, the said notification read with notification no. 43/2017-customs dated 30.06.2017 cannot be extended to the OEM suppliers. 4. 4. The AAR, Odisha also examined the appellant's next question i.e. whether the decision of the GST Council granting the exemption is binding on the Department in the absence of non-issuance of corresponding Notification by the Central/State Government. Obviously the decision of GST Council is final and binding on the State and Central Government and accordingly, as per the decision of the council, Notification No.51/96-customs dated 23.07.1996 was amended providing for exemption from levy of IGST on import of goods. GST council is a constitutional body to formulate GST policies and to make recommendation to the Union and the State. Accordingly, every notification, circular or orders issued by the Central and State Governments are duly vetted by the GST Council. However issues pertaining to rate of tax and tax concessions/ exemptions have to be as per the statutory notifications. 4.5. The last question of the Appellant was "whether the concessional rate of GST/IGST at the rate of 5% vide Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Rate), DT: 14.11.2017 and Notification No-47-1GST (Rate), DT: 14.11.2017 is applicable to the goods as discussed in earlier Para whether imported or indigenous. 6.0. The appellant in its ground of appeal, has assailed the ruling of AAR inter-alia on the following grounds:- i. That, the First Ruling of AAR that, Notification No-51/ 1996-Customs, Dt: 23.07.1996 and Minutes of the 14th GST Council decision dated 18th/ 19th May, 2017 is applicable to the Applicant for import of specified Equipments as listed in column (3) of the aforesaid notification and the said notification is not applicable to OEM suppliers of Imported Equipments is factually not correct, since Column-4(1) of the said Notification refers to "The Goods are imported by or delivered to" meaning thereby, goods imported by OEM suppliers and delivered to the specified Institutions are also exempted from IGST levy. ii. That the AAR erred in concluding vide its Third Ruling that the Concessional rate of GST/IGST at 5% vide Notification No-45-CGST (Rate), Dt: 14.11.2017 and Notification No-47-1GST (Rate), Dt: 14.11.2017 are applicable for goods mentioned at para-6.3.0 as above whether imported or indigenous, since Goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... primary requirement is - the importer must be a Public funded research institution or any other institution as specified in Column '2' against serial No.1 of the Table as referred to above. The said institution can avail the intended exemption on import of equipments as mentioned under Column '3' of the said Table (in the Annexure to Notification No.51/96-Cus. dated 23.07.1996 as amended) and subject to fulfillment of conditions as specified under Column '5' of the said Table. In case of import by the agents of the Original Equipment Manufacturers and subsequent supply to the Appellant, the primary requirement i.e. importer should be Public funded research institution is not satisfied. 8.2. On examining the Appellant's claim, the AAR, Odisha observed that the appellant satisfies the requirement of being a Public funded research institution as provided in Notification No-51/1996-Customs, dated 23.07.1996 read with Notification No-43/2017-Customs dated 30.06.2017 and ruled accordingly for being entitled to the exemption from levy of IGST on import of specified goods as listed under column (3) of the aforesaid notification. 8.3. As regards non-applicability of Notification no 51/199 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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