Assessing authority has jurisdiction under Section 28 to assess IGST exemption claims on imported goods

Kerala HC dismissed a writ petition challenging the assessing authority's jurisdiction under Section 28 of Customs Act to assess IGST on imported wet dates. The petitioner claimed exemption from IGST under Notification No.02/2017-Integrated tax (Rate). The court held that Section 28 empowers assessing authority to assess all applicable duties/taxes on imported goods, not just customs duty. The assessment order definition under Section 2(2) includes determination of dutiability and exemptions under various notifications. The authority was competent to assess IGST exemption claims, making the petition misconceived.

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Issues involved:
The judgment involves the classification of imported goods, assessment of duty, jurisdiction of the assessing authority, and the application of IGST exemption.

Classification of Imported Goods:
The petitioner imported items declared as 'Wet Dates' and classified them under CTH 0804 1020. A post-clearance audit revealed that the IGST exemption claimed was not applicable to 'wet dates' but to 'fresh dates'. The petitioner was issued a show cause notice for short levied duty, but failed to respond adequately despite multiple opportunities.

Jurisdiction of Assessing Authority:
The petitioner argued that the assessing authority under the Customs Act did not have the power to assess IGST, as it falls under the jurisdiction of the IGST Act. The petitioner contended that the impugned order was void ab initio due to being passed by an incompetent authority.

Application of IGST Exemption:
The petitioner claimed exemption from IGST under a specific notification. The assessing authority, however, found that the exemption was not applicable to the imported goods. The court determined that the competent authority was empowered to assess the claim of exemption from IGST under Section 28 of the Act.

Conclusion:
The court dismissed the writ petition, finding it to be misconceived. It stated that the assessing authority had the jurisdiction to assess duties applicable to imported goods, including IGST. The petitioner was advised to pursue the remedy of appeal, with the time spent on the writ petition considered for any delay in filing the appeal.

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