TaxTMI 
TaxTMI 
2021 (1) TMI 430
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....on No.79/2017-Cus dated 13.10.2017 in respect of additional duty of customs under sub-Section (1), (3) and (5) of Section 3, anti-dumping duty under section 9A, but opting to pay IGST on the import of goods under Advance Authorization, would tantamount to availing the benefits of exemption under Notification No.79/2017-Cus dated 13.10.2017, as contemplated under Rule 96(10) of CGST Rules, 2017? Question 2: If the answer to the above question is negative, then whether the applicant is allowed to export goods on payment of IGST and claim refund thereof under Rule 96(10) of CGST Rules, 2017? Statement of relevant facts having bearing on the question(s) related: 3. The applicant is a manufacturer of specialized pneumatic tires falling under HS Code 4011 for industrial, mining and agricultural applications of having a prestigious 4-Star Export House Status granted by the Ministry of Commerce. The applicant exports almost 85% of the production to various countries of the world. The applicant imports various raw materials under Advance Authorization scheme in which basic customs duty is exempted in terms of Notification No. 18/2015-Cus dated 01.04.2015 and additional duty o....
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....ies of Customs and IGST. The applicant further stated that they felt that the restriction under Rule 96(10) seeks to prevent the exporter from claiming refund of IGST paid on the exports, if he has received the goods (i.e. inputs) which are exempted or nil rated or the supplier has paid the tax at reduced rate on the same. This has been clarified in the earlier Board's Circular No.45/19/2018-GST dated 30.05.2018. The applicant is of the opinion that the term 'tax' referred to in these circulars is the 'Goods and Service Tax'. In case of imports, the GST payable is 'integrated tax' under Sub-section (1) of Section 5 of the IGST Act, 2017. The applicant is opting to pay IGST on their imports, but avails exemption on other applicable customs duties in terms of the Notification No.79/2017-Cus dated 13.10.2017. Thus, the applicant has received (imported) the goods on which the tax (IGST) has been paid and, therefore, according to them, they cannot be held to have availed the 'benefits of the Notification No.79/2017-Cus dated 13.10.2017', as contemplated in Rule 96(10) of CGST Rules, 2017. Further, the exemption on additional duties of Customs and anti-dumping duty are governed by the Cu....
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.... the applicant, relevant facts & the applicant's interpretation of law. 6.1 At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 7. In this case, moot points are to be decided as to whether availing exemption under Notification No.79/2017-Cus dated 13.10.2017 in respect of additional duty of customs, anti-dumping duty, but opting to pay IGST on the import of goods under Advance Authorization, would tantamount to availing the benefits of exemption under Notification No.79/2017-Cus dated 13.10.2017, as contemplated under Rule 96(10) of CGST Rules, 2017 and in such case as to whether the applicant is allowed to export goods on payment of IGST and claim refund thereof under Rule 96(10) of CGST Rules, 2017. 8. As per the facts stated in the application, the applicant is a manufacturer of specialized pneumatic tires falling under HS Code 4011 for industrial, mining and agricultural applications of having a prestigious....
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....ent to exporters' representations, Notification No. 79/2017-Customs dated 13th October, 2017 was issued amending the above Notification No.18/2015-Customs to allow exemption from the IGST and Compensation Cess on import of goods related to Advance Authorisation(AA). Further, as per the condition (xiii) inserted vide Notification No.79/2017-Customs, the exemption from integrated tax and the goods and services tax compensation cess leviable thereon under sub-section (7) and sub-section (9) of section 3 of the said Customs Tariff Act shall be available up to the 31st March, 2018. Further, vide Notification No. 35/2018-Customs dated 28th March, 2018, the exemption from integrated tax and the goods and services tax compensation cess leviable thereon is extended up to the 1st October, 2018. 10. In order to appreciate the issue, it is relevant to peruse the amendments made in Rule 96 of CGST Rules, 20017 from time to time and clarification issued by the CBEC, which are reproduced herein below: (i) Notification No.3/2018-Central Tax dated 23.01.2018 amended Rule 96 with retrospective effect from October 23, 2017 and inserted sub-rule (10) to state that the persons claiming the ....
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....1305 (E), dated the 18th October, 2017 or notification No. 40/2017-Central Tax (Rate), dated the 23rd October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),vide number G.S.R 1320 (E), dated the 23rd October, 2017 or notification No. 41/2017-Integrated Tax (Rate), dated the 23rd October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321 (E), dated the 23rd October, 2017 has been availed; or (b) availed the benefit under notification No. 78/2017-Customs, dated the 13th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1272(E), dated the 13th October, 2017 or notification No. 79/2017-Customs, dated the 13th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1299 (E), dated the 13th October, 2017." (iii) Board vide Circular No.59/33/2018-GST dated 04th September, 2018 issued clarification regarding restriction imposed vide rule 96(10) of the CGST Rules, as under: "5. Scope of rule 96(10) of the CGST Rules: ....
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....ds from the suppliers who avail the benefit under notifications provided under Rule 96 (10) cannot claim refund of tax paid on export. The extract of the amendment is reproduced herein below: "2. In the Central Goods and Services Tax Rules, 2017, in rule 96, for sub-rule (10), the following sub-rule shall be substituted and shall be deemed to have been substituted with effect from the 23rd October, 2017, namely:- "(10) The persons claiming refund of integrated tax paid on exports of goods or services should not have received supplies on which the supplier has availed the benefit of the Government of India, Ministry of Finance, notification No. 48/2017-Central Tax, dated the 18th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1305 (E), dated the 18th October, 2017 or notification No. 40/2017-Central Tax (Rate) dated the 23rd October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1320 (E), dated the 23rd October, 2017 or notification No. 41/2017-Integrated Tax (Rate), dated the 23rd October, 2017, published in the Gazette of India....