Onset of GST was propagated with the philosophy of “NO TAX EXEMPTIONS” and thereby leading to non-amendment of Customs Notification exempting GST levies for import of Capital Goods made under EPCG Licence. However, the same was later amended on 13.10.2017 leaving the position of exemption on imports made during 01.07.2017 to 13.10.2017 disputed. It was being perceived that an exemption can never be retrospective and therefore, the importer was liable to pay IGST on imports.
On a challenge being made, Hon’ble Gujarat HC in the case of ๐/๐ฌ ๐๐ซ๐ข๐ง๐๐ ๐๐ฉ๐ข๐ง๐ญ๐๐ฑ ๐๐ฏ๐ญ ๐๐ญ๐ ๐๐๐ซ๐ฌ๐ฎ๐ฌ ๐๐ง๐ข๐จ๐ง ๐จ๐ ๐๐ง๐๐ข๐ in R/SCA No. 20756 of 2018 held that imports are exempt even during the period 01.07.2017 to 13.10.2017. Hon’ble Court held that “๐๐ฑ๐๐ฆ๐ฉ๐ญ๐ข๐จ๐ง ๐๐จ๐ญ๐ข๐๐ข๐๐๐ญ๐ข๐จ๐ง ๐ข๐ฌ ๐ญ๐จ ๐๐ ๐ซ๐๐๐ ๐ข๐ง ๐ญ๐ก๐ ๐๐จ๐ง๐ญ๐๐ฑ๐ญ ๐จ๐ ๐ญ๐ก๐ ๐๐๐๐ ๐ฉ๐จ๐ฅ๐ข๐๐ฒ ๐ค๐๐๐ฉ๐ข๐ง๐ ๐ข๐ง ๐ฆ๐ข๐ง๐ ๐ญ๐ก๐ ๐จ๐๐ฃ๐๐๐ญ ๐๐ง๐ฏ๐ข๐ฌ๐๐ ๐๐ ๐๐ฒ ๐ญ๐ก๐ ๐ฉ๐จ๐ฅ๐ข๐๐ฒ ๐๐ง๐ ๐ง๐จ๐ญ ๐ข๐ง ๐ญ๐ก๐ ๐ฌ๐ญ๐ซ๐ข๐๐ญ ๐ฌ๐๐ง๐ฌ๐ ๐๐ฌ ๐ข๐ง ๐ญ๐ก๐ ๐๐๐ฌ๐ ๐จ๐ ๐ ๐ ๐๐ง๐๐ซ๐๐ฅ ๐๐ฑ๐๐ฆ๐ฉ๐ญ๐ข๐จ๐ง ๐ฎ๐ง๐๐๐ซ ๐ฌ๐๐๐ญ๐ข๐จ๐ง ๐๐ ๐จ๐ ๐ญ๐ก๐ ๐๐ฎ๐ฌ๐ญ๐จ๐ฆ๐ฌ ๐๐๐ญ.” Meaning thereby, these are not pure exemption notifications rather merely a mechanism envisaged to give effect to the provision of FTP.
Recently, the same Court in the matter of ๐/๐ฌ ๐๐๐๐ก๐๐ฌ๐ก๐ฒ๐๐ฆ ๐๐ฉ๐ง๐ง๐ข๐ง๐ ๐๐ฏ๐ญ ๐๐ญ๐ ๐๐ฌ ๐๐๐ in R/SCA No. 20759 of 2018 allowed refund of accumulated ITC taking a note of the amendments made in the order and manner of utilisation of ITC [Sec 49B as well as Rule 88A] w.e.f. 01.02.2019 which resulted in accumulation of credit under the head CGST and SGST. The court also observed that the said order became operational on common portal w.e.f. 01.06.2019.Watch crisp discussion by our Managing Partner atย https://lnkd.in/dhGP6mMv
