2020 (2) TMI 353

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....d of the Customs Duty paid, due to unfulfilled export obligation against Advance Authorization, under Section 142 (3) of the C.G.S.T. Act, 2017. The assessee-appellant could not fulfil its export obligation in some cases, as per annexure to its request for refund dated 16.05.2019, owing to lack of export orders, which prompted the appellant to pay off the Customs Duties on account of short export and thereby close the export obligation under the above Advance Licences. It is also an admitted fact that the above Customs Duty was paid along with appropriate interest. It is the case of the appellant that since the inputs imported by it were used in the manufacture of final products on which Central Excise Duty/G.S.T., as the case may be, was p....

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....me would tantamount to a normal import and hence, the CENVAT Credit would remain available. He also relied on the following decisions of various Benches of the Tribunal : (i) T2S Software Solutions Pvt. Ltd. v. Commr. of G.S.T. & Central Excise [2019 (7) T.M.I. 1299 - CESTAT Chennai]; (ii) Rawalwasia Ispat Udyog Pvt. Ltd. V. C.C.E., Panchkula [2019 (7) T.M.I. 1242 - CESTAT Chandigarh]; (iii) JMT Consultant Detailing Pvt. Ltd. v. Commr. of Central Tax, Bengaluru East [2019 (12) T.M.I. 648 - CESTAT Bangalore]; (iv) German Remedies Ltd. v. C.C.E., Goa [2004 (177) E.L.T. 539 (Tri. - Del.)] 6.1 Per contra, Ld. Authorized Representative for the Revenue supported the findings of the lower authorities. Ld. Aut....

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....Authorization and therefore, as pointed out by the Ld. Authorized Representative for the Revenue, the same are not applicable to the facts of this case. 9.1 Advance Authorization is issued in terms of paragraph 4.03 of the Foreign Trade Policy [FTP (2015-20)] and the relevant Notification is Notification No. 18/2015-Cus. dated 1st April, 2015. The said Notification exempts materials imported into India against a valid Advance Authorization issued by the Regional Authority in terms of paragraph 4.03 of the FTP subject to the conditions laid down thereunder. One of the conditions, as per clause (iv), is that it requires execution of a bond in case of non-compliance with the conditions specified in that Notification. Further, paragraph 2.35....

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.... be used anywhere else but for export and hence, claiming input credit upon failure would defeat the very purpose/mandate of the Advance Licence. Hence, claim as to the benefit of CENVAT just as a normal import which is suffering duty is also unavailable for the very same reasons, also since the rules/procedures/conditions governing normal import compared to the one under Advance Authorization may vary because of the nature of import. 11. The import which would have normally suffered duty having escaped due to the Advance Licence, but such import being a conditional one which ultimately stood unsatisfied, naturally loses the privileges and the only way is to tax the import. The governing Notification No. 18/2015 (supra), paragraph 2.35 o....