TMI BlogPre-import condition under Advance AuthorisationX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts, Prior to introduction of GST, exemption was available for all custom duties including CVD SAD on imports under Advance Authorisation. The notification also permitted duty free imports even after fulfillment of the export obligation. No one to one correlation of import vis- -vis corresponding export orders was required as the scheme itself provides for the export in anticipation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of benefits under this scheme. On introduction of GST regime the earlier exemption of CVD SAD was not extended to IGST, forcing the exporters to pay IGST at the time of imports. Thereafter Notfn No. 79/2017-cus dtd.13.10.17 was issued restoring earlier position i.e. exempting IGST, however with condition of pre-import , subsequently this condition of pre-import was removed vide Notfn 01 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2019-Cus dtd. 10.01.2019 . However many exporters being unaware of pre-import condition continued imports under Advance Authorisation for the intervening period (13.10.2017 to 19.01.2019) and the customs allowed such imports. Now at the time of getting export obligation discharge certificate, office of Jt. DGFT is asking the exporter to pay IGST amount on the imports made. Honarable HC of Gu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jarat High Court case of Maxim Tubes Co. Pvt. Ltd. Vs UOI 2019 (2), TMI 1445 has struck down the pre-import condition (against Madras HC in case of Vedanta Ltd Vs. UOI 2019 (1) TMI 85 ) Our query is : 1. Is Jt. DGFT is correct in demanding payment of IGST in light of Gujarat HC decision. We have imported under Advance Authorisation with IGST payment made exports under LUT without paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of IGST. 2. If we opt to pay IGST, whether we will be eligible to claim ITC now : How we should it through TR-6 challan , then we would not be able to claim ITC if eligible. Through re-assessed of Bill of Entry. Your expert advice is solicited. - Reply By KASTURI SETHI - The Reply = Sh. Viraf Deboo Ji, The department has filed Special Leave Petition against the judgement o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Guajrat High Court in the Supreme Court reported as [ Union of India v. Yasho Industries Limited - 2019 (10) TMI 1466 - SC ORDER ] [ Union of India v. Maxim Tubes Company Pvt. Ltd. - 2019 (10) TMI 1467 - SC ORDER ]. The department will continue raising demands in such cases until the issue is decided by the Supreme Court. The matter is sub judice. Re-assessed bill of entry is the bett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er recourse. You will not face the sword of time limitation in this way. - Reply By viraf deboo - The Reply = Thank you Mr Kasturi Sethi for your reply. Pl advise if we pay IGST after re-assessing the Bill of entry , can we claim ITC on it.? - Reply By KASTURI SETHI - The Reply = Sh Viraf Deboo Ji, The issue is debatable. However, in my view ITC can be availed on the strength of re- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessed bill of entry.You are well aware that bill of entry is assessed by the Customs Authorities. Customs duties/IGST are determined by the Customs Officer. We can say that the assessed bill of entry is assessment order. Hence the date of assessment/determination of tax is relevant for availing ITC on the strength of bill entry.. As per Section 2(11) of CGST Act assessment means dete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmination of tax liability under this Act and includes self-assessment, re-assessment , provisional assessment, summary assessment and best judgment assessment; As per Section 20 of IGST Act , the provisions of CGST Act are applicable to IGST Act . Section 20(iv) (xii) of IGST Act refer. I have expressed my personal views on the issue. Since the issue is debatable, you may op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for Advance Ruling. - Reply By Shilpi Jain - The Reply = Your question states you have imported under advance authorisation with payment of IGST and department is again demanding IGST? - Reply By viraf deboo - The Reply = Dear Mr Kasturi Sethiji Many thanks for expert advise. The problem with advance ruling is that it takes considerable time to get a judgement, and meanwhile department m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay take coercive action - Reply By viraf deboo - The Reply = Dear Ms Jain, We have not paid IGST at the time of import, the customs have allowed us the same . We have done export under advance authorizations under LUT without payment of IGST on exports. - Reply By KASTURI SETHI - The Reply = In this scenario, the querist has not availed the facility of LUT. Hence there is a world of differe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce between the two situations. - Reply By Shilpi Jain - The Reply = Agree with Kasturi sir on re assessing BoE and claiming ITC. The issue with TR-6 challan could be that it is not a prescribed doc to claim ITC under gst. But that is a gap in the law and thereby assessee should not be denied of ITC because of this. - Reply By viraf deboo - The Reply = Thank you Kasturiji and Shilpiji fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r your advise - Reply By Samik Pathak - The Reply = Hello sir, In this connection, what if one regular exporter has started export under advance authorisation without prior important. Will the exporter be liable to pay duty ? If yes how much ?(mention calculation also ) - Pre-import condition under Advance Authorisation - Query Started By: - viraf deboo Dated:- 11-10-2021 Goods and Services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax - GST - Got 10 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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