2017 (10) TMI 693 - HC - GST

Court grants interim relief to Petitioner facing IGST payment issues for imported goods

Jindal Dyechem Industries (P) Ltd. Versus Union of India & Others

The Court granted interim relief to the Petitioner in a case concerning relief measures for exporters by the Goods and Service Tax Council. Despite the ... Relief package for exporters - import of Gold bars - Advance Authorisation Scheme - Held that: - in view of the press release dated 6th October 2017, which prima facie makes no distinction as regards the Advance Authorisations (AA) issued prior to or after 1st July 2017, the Petitioner will not hereafter be required to pay IGST in respect of the imports of gold bars made by it Petitioner in terms of the AAs issued to it - interim relief is granted subject to the Petitioner furnishing to the Respondent authorities a letter of undertaking that the clearance of the imported goods in terms of the AA will be subject to the final result of the present petition. Issues:1. Relief measures announced by the Goods and Service Tax Council for exporters.2. Non-clearance of goods due to IGST payment despite relief measures.3. Petitioner's plea for relief from IGST payment for imported goods.4. Interim relief granted to the Petitioner pending final decision.Analysis:1. The judgment pertains to relief measures announced by the Goods and Service Tax Council for exporters, including the clearance of held-up refunds of IGST, processing of refunds for subsequent months, and empowerment of GST officers for expedited refunds. Additionally, the Council approved immediate relief for exporters to prevent cash blockage by extending schemes for sourcing inputs from abroad and domestic suppliers.2. Despite the relief measures announced, the Petitioner faced a situation where they were not allowed to clear imported goods without paying IGST. The Petitioner's counsel highlighted the payment of IGST for imported gold bars and the authorities' refusal to permit clearance despite the Petitioner's protests.3. In response to the Petitioner's plea, the Court directed the Petitioner to submit an affidavit detailing the IGST payment issue within three days. Considering the press release by the GST Council and the lack of distinction regarding Advance Authorisations issued before or after 1st July 2017, the Court granted interim relief to the Petitioner. The Petitioner was exempted from paying IGST for imported gold bars under the AA, subject to providing a letter of undertaking and verification by the Customs Department.4. As an interim measure, the Court granted relief to the Petitioner pending the final decision on the petition. The case was listed for further proceedings on 28th November 2017, with the order to be provided under the signature of the Court Master for immediate action.