Appellant entitled to IGST exemption on re-imported aircraft parts under Exemption Notification

The Tribunal held that the appellant is entitled to exemption from IGST on re-imported aircraft parts under Exemption Notification No. 45/2017. The orders assessing IGST on the parts were set aside, determining that IGST is not included in the term "duty of customs." The Tribunal dismissed 10 appeals filed late and allowed the remaining 51, granting exemption from IGST on re-imported aircraft parts.

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Issues Involved:
1. Availability of Integrated Goods and Service Tax (IGST) exemption for re-imported aircraft parts under the Exemption Notification No. 45/2017.
2. Interpretation of "duty of customs" in the context of the Exemption Notification.
3. Applicability of integrated tax as part of "duty of customs."
4. Jurisdiction and applicability of various sections of the Customs Tariff Act and the Integrated Goods and Services Tax Act.

Detailed Analysis:

1. Availability of IGST Exemption for Re-imported Aircraft Parts:
The primary issue in these appeals is whether the appellant is entitled to an exemption from IGST on re-imported aircraft parts under the Exemption Notification No. 45/2017. The appellant claimed that the exemption should apply, arguing that the term "duty of customs" in the notification does not include IGST. However, the Customs Authorities disagreed, leading to the assessment of IGST on the re-imported parts.

2. Interpretation of "Duty of Customs":
The appellant argued that "duty of customs" as mentioned in the Exemption Notification should not include IGST, relying on the definition in Section 2(15) of the Customs Act, which defines "duty" as duty of customs leviable under the Customs Act. They contended that since IGST is levied under the Integrated Tax Act, it should not be considered as "duty of customs." The Tribunal agreed with this interpretation, noting that the term "duty of customs" in the Exemption Notification should be understood as per its definition in the Customs Act, which does not include IGST.

3. Applicability of Integrated Tax as Part of "Duty of Customs":
The Tribunal examined whether IGST should be considered part of the "duty of customs." It was noted that Section 3(7) of the Customs Tariff Act provides for the levy of IGST, but this does not mean IGST becomes a "duty of customs." The Tribunal emphasized that IGST is levied under the Integrated Tax Act and only collected by customs authorities, thus it should not be conflated with "duty of customs."

4. Jurisdiction and Applicability of Various Sections:
The Tribunal referred to several sections of the Customs Tariff Act and the Integrated Goods and Services Tax Act to clarify the legislative intent and scope of these provisions. They concluded that the Exemption Notification's reference to "duty of customs" does not implicitly include IGST, as the latter is a separate tax levied under a different statute. The Tribunal also referenced multiple judgments to support this interpretation, including the Supreme Court's decision in Prestige Engineering and the Bombay High Court's ruling in Ceat Tyres, which distinguished between different types of duties and taxes.

Conclusion:
The Tribunal concluded that the appellant is entitled to exemption from IGST on re-imported aircraft parts under the Exemption Notification No. 45/2017. The orders passed by the Commissioner (Appeals) upholding the assessments of IGST on the re-imported parts were set aside. The Tribunal held that the term "duty of customs" in the Exemption Notification does not include IGST, and therefore, the appellant should not be liable for IGST on re-imported parts.

Final Orders:
- The 10 appeals filed beyond the prescribed period were dismissed.
- The remaining 51 appeals were allowed, granting the appellant exemption from IGST on re-imported aircraft parts.

[Order dictated and pronounced on January 12, 2021]

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