EXEMPTION IN CASE OF IMPORT GOODS DESTROYED

[ANIL KUMAR]

WE HAVE PURCHASED IMPORTED WASTE PAPER WITH EXEMPTION U/S 50/2017-CUSTOMS.

HOWEVER WE HAVE PAID IGST ON THAT. HOW TO GET EXEMPTION U/S 50/2017-CUSTOMS IF WE CAN NOT USE SUCH MATERIAL TO PRODUCED FINISHED GOODS DUE TO GOODS DESTROYED IN TERRIBLE FIRE. HOW TO APPLY FOR THAT EXEMPTION IN THAT CASE. KINDLY LET US KNOW ABOUT FULL GUIDELINES SINCE APPLY TO COMMISSIONER SAHAB.

[YAGAY and SUN]

For IGST you cannot avail exemption. Section 23 of the Customs Act say remission of duty on lost destroyed or abandon goods can be availed before clearance of goods but not beyond that. Therefore in our view claim Insurance.

AI Summary

Remission of duty unavailable after clearance; IGST on destroyed imports cannot be exempted, seek insurer recourse.
Importer paid IGST on imported waste paper later destroyed by fire. Remission of duty is available only before clearance of goods; exemption or remission cannot be claimed after clearance to negate IGST paid. Where remission is not available post clearance, the advised recourse is to claim under insurance.