TaxTMI 
TaxTMI 
2017 (9) TMI 674
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....Goregaon (East), Mumbai. 2. The Foreign Trade Policy ('FTP') 2015-2020 was notified by Trade Notification No. 1/2015-2020 dated 1st April 2015 and operationalised by Notification No. 18/2015-Cus dated 1st April 2015. In terms thereof, an Advance Authorization Scheme (AAS) was made available as a duty exemption scheme under Chapter 4. Exporter manufacturers, like the Petitioner, were entitled to duty free import of the input which is physically incorporated in the export product. Imports under the AAS was exempted from payment of (i) Basic Customs Duty, (ii) Additional Customs Duty, (iii) Education Cess, (iv) Anti-dumping duty and (v) Safeguard Duty and (vi) Transition Product Specific Safeguard Duty, wherever applicable. 3. The Advanc....
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....he Petitioner is that it holds export orders placed on it prior to 1st July 2017 for the fulfilment of which it has to undertake imports of inputs. One such export order placed on the Petitioner by Walmart Inc., USA has been enclosed as Annexure-P/3 to C.M. No. 28923/2017. The Petitioner seeks to explain that, with the change brought about by the GST regime, the Petitioner would have no option but to pay IGST out of its sources causing a working capital blockage. The Petitioner would have to rely upon borrowings as it has already exhausted its overdraft limits with the banks. The prospect of the IGST being ultimately refunded some time in future is of little consolation to the Petitioner who seeks liquidity to discharge the additional levy ....
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....nshu Gupta, Principal Commissioner, GST Delhi North, New Delhi. 9. Mr. Narula submits that there is a misconception regarding withdrawal of the exemption earlier granted under the Notification dated 1st April 2015. He states that all those exemptions relevant to the Petitioner's imports for the discharge of its export orders continue as such. He, however, does not dispute that for imports made after 1st July 2017, the Petitioner would be required to pay the additional IGST which is now been made mandatory by virtue of amendment to Section 3 of the CTA, 1975. He points out that the Petitioner would be able to seek refund of the IGST after completion of its export obligations and, therefore, the Petitioner cannot have any real grievance. H....
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.... an additional levy is imposed, after the acceptance of such export orders, the resultant burden cannot possibly be passed on by the exporter to the buyers outside India. This might lead to the cancellation of such export orders placing the exporter in a piquant situation. 12. It requires to be reiterated that, in the present case, the Petitioner-Exporter is not questioning the legislative competence to levy the additional IGST. It is only questioning the applicability of such levy even to imports that are made for fulfilment of export orders that have been placed on and accepted by the Petitioner prior to 1st July, 2017. Also, the Petitioner is seeking to only avail the credit outstanding in respect of advance authorizations issued to t....