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....le-III of Notification No. 01/2017-Integrated Tax (Rate) dated 28.06.2017. The department's stand is that the appellant has wrongly adopted residual entry at Sr. No. 453 of which is reserved for all such goods which are not specified in various Schedules and therefore, should have been classified in Schedule-IV (Sr. No. 139) of the said Notification. The objection at this stage, emerges from the fact that the issue necessarily involves interpretation of another legislation and the Notification issued under that Act i.e. IGST Act, 2017 and therefore, the scope and interpretation of the same cannot be done by this Tribunal which is an entity under the Customs Act, 1962 and unlike the GST officers who have been given powers both under GST legislation as well as other indirect taxes. The jurisdiction of this Tribunal should be confined to the interpretation of Customs Act, Finance Act, 1994 and Central Excise Act like legislations. In this regard following order was passed on 04.08.2025 in the aforesaid matter:- "When the facts were brought out by the learned advocate before the bench, it turned out that though the demand has been raised under Customs Act i.e. Section 28, the ....
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....% under Sl. No. 139 of Schedule IV of the IGST Rate Notification for the period from 01.04.2018 to 26.07.2018, and at 18% under Sl. No. 376AA of Schedule III of the IGST Rate Notification w.e.f. 27.07.2018, as claimed by the department. Lithium-ion batteries imported use manufacture in the of mobile phones are covered under Sl. 203 No. Rate and of Schedule II of IGST Notification would be to subjected Integrated Tax at 12% from upto 01.04.2018 31.03.2020. 2. M/s JMK Energy VS Commissioner of Delhi Customs, (2023) 7 Centax 128 (Tri.-Del) Whether the Portable Solar Home Electric Light HANS 300 and HANS 150 covered under Sl. No. 234 of Schedule 1 or Sl. No. 139 of Schedule IV of the IGST Rate Notification. The Portable Solar Home Electric Light merit classification under Sl. No. 234 of Schedule I of IGST Rate Notification. 3. ARC Distributers I Pvt. Ltd. vs Commissioner of Customs-No. Mundra, Final Order 10993/2024 (CESTAT-Ahmedabad) dated 02.05.2024 Whether imported branded nutrition/dietary supplements are liable to Integrated Tax at 28% as per Sl. No. 9 of Schedule IV as claimed by the department or 18% as per Sl. No. 453 of Schedule III of IGST Rate Notific....
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....mited Vs. Commissioner (Appeals), Central Excise & CGST, Jaipur as reported in 2024 (390) E.L.T. 207 (Tri. -Del.). 4. As opposed to this, learned AR submits as follows to indicate that this Tribunal has jurisdiction to decide the matter even if it involves applicability of rate of duty of IGST, till the time it does not involve interpretation of IGST Act as such:- • The issue in brief pertains to IGST rate applicable on import of various parts of lithium-ion batteries by the appellant who was classifying the said imports under CTH 85079090 and paying IGST @ 18% as per Sr. No. 453 of Schedule III of Notification No. 1/2017-Integrated Tax (Rate) dated 28.06.2017. As per Revenue, imported goods should have been rightly classified under Schedule IV (Sr. No. 139) of the said Notification and so, demand of Customs Duty including IGST has been issued under Section 28 of the Customs Act, 1962. • Basically, issue relates to classification of the subject goods for the purpose of applicable rate of Integrated Tax in terms of Section 3 (7) of the Customs Tariff Act, 1975 which reads as under: "(7) Any article which is imported into India shall, in addition....
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....5-23-24 dated 04.03.2024 ('Impugned Order'), passed by the Ld. Commissioner of Customs (Preventive), Jamnagar in the Show Cause Notice No. COMMR-03/2023-24 dated 22.11.2023. • In terms of Section 129A(1)(a) of the Customs Act, 1962 ('Customs Act'), any person aggrieved by "an order or decision passed by the Commissioner of Customs", as an "adjudicating authority", is entitled to file the appeal before the CESTAT. • The Appellant filed this appeal before the Hon'ble CESTAT, availing the statutory remedy of appeal provided under the Customs Act. Further, preamble to the impugned order at Para 2 suggests filing of appeal in Form CA-3, under Section 129A(1)(a) of the Customs Act read with Rule 6(1) of the Customs (Appeals) Rules, 1982, before CESTAT, Ahmedabad. 5.2 The CESTAT, vide various decisions, has decided matters involving IGST rate. • Different benches of CESTAT across the country, on numerous occasions, have dealt with issues involving only the classification and rate of tax applicable under the IGST on imported goods. A list of such decisions has been provided in the table at Pg. Nos. 1 and 2 of the compilation sub....
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....o. 213A provides for complete exemption from IGST on Diethylcarbamazine (DEC) tablets. (iii) Sl. No. 219A provides for exemption of IGST in excess of 5% to all goods of Customs Tariff Item 3102 30 00. (iv) Sl. No. 223 provides for exemption of IGST in excess of 5% to Composite Fertilizers of Chapter 31. b) Notification No. 19/2019-Cus. dated 06.07.2019 inter alia provides for exemption to goods specified therein, from whole of IGST leviable under Section 3(7) of the Customs Tariff Act, when imported by Ministry of Defence or the Defence forces or any Public Sector Units for Defence forces. c) Notification No. 29/2025-Cus. dated 09.05.2025, inter alia, provides for exemption to works of art and antiques, from the whole of IGST leviable under Section 3(7) of the Customs Tariff Act, subject to conditions specified therein. d) Notification No. 153/1994-Cus. dated 13.07.1994 (as amended) inter alia provides for exemption to goods specified therein from the whole of IGST leviable under Section 3(7) of the Customs Tariff Act, subject to conditions specified therein. e) Notification No. 154/1994-Cus. dated 13.07.1994 (as amended) inter ....
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....mbai) dated 18.11.2024 held that demand of additional IGST on imports did not stand the scrutiny of law and was liable to be set aside due to lack of provisions in the Customs Tariff Act to raise such demand. While holding so, it relied on the decision of Hon'ble Bombay High Court in Mahindra & Mahindra Ltd. (Automotive Sector) vs. the Union of India, Writ Petition No. 1848 of 2009 dated 15.09.2022, wherein it was held that demand of interest and penalty on IGST was not sustainable due to lack of substantive provisions in Section 3 of the Customs Tariff Act requiring payment of such interest and penalty. The Civil Appeal in Diary No. 22160/2025 dated 14.07.2025 filed by the Department against above decision was dismissed by Hon'ble Supreme Court. • Thus, insofar as the disputed period in the subject appeal (i.e., prior to the amendment in Section 3(12) of the Customs Tariff Act) is concerned, it is submitted that the Customs authorities cannot demand differential IGST on imported goods due to lack of provision in the Customs Tariff Act. 5.7 IGST is not a duty of Customs. • Hon'ble CESTAT, New Delhi in the case of M/s Mayur Uniquoters Limited....
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.... (12 of 2017)], the Central Government, on the recommendations of the Council, hereby notifies the rate of the integrated tax of- (i) 5 per cent in respect of goods specified in Schedule 1, (ii) 12 per cent in respect of goods specified in Schedule II, (iii) 18 per cent in respect of goods specified in Schedule III, (iv) 28 per cent in respect of goods specified in Schedule IV, (v) 3 per cent in respect of goods specified in Schedule V, ***] (vi) 0.25 per cent in respect of goods specified in Schedule VI "[, and] (vii) 1.50 per cent in respect of goods specified in Schedule VII appended to this notification (hereinafter referred to as the said Schedules), that shall be levied on inter-State supplies of goods, the description of which is specified in the corresponding entry in column (3) of the said Schedules, falling, under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Schedules." SCHEDULE I-5% S. No. Chapter / Heading / Sub-heading / Tariff item Description of Goods (1) (2) (3) 1 0202, 0203, 020....
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....aid or part-paid. [Provided that the proper officer shall not serve such show cause notice, where the amount involved is less than rupees one hundred.] (2) The person who has paid the duty along with interest or amount of interest under clause (b) of sub-section (1) shall inform the proper officer of such payment in writing, who, on receipt of such information, shall not serve any notice under clause (a) of that sub-section in respect of the duty or interest so paid or any penalty leviable under the provisions of this Act or the rules made thereunder in respect of such duty or interest: [Provided that where notice under clause (a) of sub-section (1) has been served and the proper officer is of the opinion that the amount of duty along with interest payable thereon under section 28AA or the amount of interest, as the case may be, as specified in the notice, has been paid in full within thirty days from the date of receipt of the notice, no penalty shall be levied and the proceedings against such person or other persons to whom the said notice is served under clause (a) of sub-section (1) shall be deemed to be concluded.] Explanation 2.-For the rem....
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....t percentage of the value of the imported article: Provided that in case of any alcoholic liquor for human consumption imported into India, the Central Government may, by notification in the Official Gazette, specify the rate of additional duty having regard to the excise duty for the time being leviable on a like alcoholic liquor produced or manufactured in different States or, if a like alcoholic liquor is not produced or manufactured in any State, then, having regard to the excise duty which would be leviable for the time being in different States on the class or description of alcoholic liquor to which such imported alcoholic liquor belongs. Explanation.-In this sub-section, the expression "the excise duty for the time being leviable on a like article if produced or manufactured in India" means the excise duty for the time being in force which would be leviable on a like article if produced or manufactured in India or, if a like article is not so produced or manufactured, which would be leviable on the class or description of articles to which the imported article belongs, and where such duty is leviable at different rates, the highest duty. (2) For t....
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.................................................... (7) Any article which is imported into India shall, in addition, be liable to integrated tax at such rate, not exceeding forty per cent. as is leviable under section 5 of the Integrated Goods and Services Tax Act, 2017 on a like article on its supply in India, on the value of the imported article as determined under sub-section (8) [or sub-section (8A), as the case may be] (8) For the purposes of calculating the integrated tax under sub-section (7) on any imported article where such tax is leviable at any percentage of its value, the value of the imported article shall, notwithstanding anything contained in section 14 of the Customs Act, 1962 (52 of 1962), be the aggregate of- (a) the value of the imported article determined under sub-section (1) of section 14 of the Customs Act, 1962 (52 of 1962) or the tariff value of such article fixed under sub-section (2) of that section, as the case may be; and (b) any duty of customs chargeable on that article under section 12 of the Customs Act, 1962 (52 of 1962), and any sum chargeable on that article under any law for the time being in force as an additio....
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....Act, 1962 or the tariff value of such article fixed under sub-section (2) of that section, as the case may be; and (b) any duty of customs chargeable on that article under section 12 of the Customs Act, 1962, and any sum chargeable on that article under any law for the time being in force as an addition to, and in the same manner as, a duty of customs, but does not include the tax referred to in sub-section (7) or the cess referred to in sub-section (9). (10A) Where the goods deposited in a warehouse under the provisions of the Customs Act, 1962 (52 of 1962) are sold to any person before clearance for home consumption or export under the said Act, the value of such goods for the purpose of calculating the goods and services tax compensation cess under sub-section (9) shall be,- (a) where the whole of the goods are sold, the value determined under sub-section (10) or the transaction value of such goods, whichever is higher; or (b) where any part of the goods is sold, the proportionate value of such goods as determined under sub-section (10) or the transaction value of such goods, whichever is higher: Provided that where the whole of the w....
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....r machinery provision of the section to be equivalent to IGST. 6.5 Further Section 129A provides as follow:- "129A. Appeals to the Appellate Tribunal.- (1) Any person aggrieved by any of the following orders may appeal to the Appellate Tribunal against such order- (a) a decision or order passed by the 1 [Principal Commissioner of Customs or Commissioner of Customs] as an adjudicating authority; (b) an order passed by the 2 [Commissioner (Appeals)] under section 128A; (c) an order passed by the Board or the Appellate 3 [Commissioner of Customs] under Section 128, as it stood immediately before the appointed day; (d) an order passed by the Board or the 1 [Principal Commissioner of Customs or Commissioner of Customs], either before or after the appointed day, under section 130, as it stood immediately before that day: [Provided that no appeal shall lie to the Appellate Tribunal and the Appellate Tribunal shall not have jurisdiction to decide any appeal in respect of any order referred to in clause (b) if such order relates to,- (a) any goods imported or exported as baggage; (b) any goods loaded in a co....
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....ect the proper officer to appeal 4 [on its behalf] to the Appellate Tribunal against such order: [Provided that where the Committee of 2 [Principal Commissioners of Customs or Commissioners of Customs] differs in its opinion regarding the appeal against the order of the Commissioner (Appeals), it shall state the point or points on which it differs and make a reference to the jurisdictional 6 [Principal Chief Commissioner of Customs or Chief Commissioner of Customs] who shall, after considering the facts of the order, if is of the opinion that the order passed by the Commissioner (Appeals) is not legal or proper, direct the proper officer to appeal to the Appellate Tribunal against such order. Explanation. -For the purposes of this sub-section, ―jurisdictional Chief Commissioner‖ means the 6 [Principal Chief Commissioner of Customs or Chief Commissioner of Customs] having jurisdiction over the adjudicating authority in the matter.] (3) Every appeal under this section shall be filed within three months from the date on which the order sought to be appealed against is communicated to the [Principal Commissioner of Customs or Commissioner of Custo....
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....payable in the case of an application filed by or on behalf of the [Principal Commissioner of Customs or Commissioner of Customs] under this sub-section.]" It is thus clear that the jurisdiction of Appellate Tribunal gets vested in it, if a decision and order is passed by the Principal Commissioner of Customs or of Commissioner of Customs as Adjudicating Authority and/or if an order is passed by the Commissioner (Appeals) under Section 128A of the Customs Act, 1962. The statutory Provision vesting Appellate Tribunal with the jurisdiction does not state whether the order should be passed exclusively under the Customs Act, 1962 or should not involve allied Acts like GST Acts. That description is therefore complete in all respects. The only requirement that the right gets vested if the order is passed by Commissioner (Appeals) or by Commissioner as Adjudicating Authority. Further, Section 2(2) of the IGST Act, 2007 provides the definition of Central Tax and Section 2(12) as Integrated Tax are as follows: "(2) "central tax" means the tax levied and collected under the Central Goods and Services Tax Act; (12) "integrated tax" means the integrated goods and service t....
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....ions relating to the imposition of interest and penalty, shall, mutatis mutandis, apply, so far as may be, in relation to integrated tax as they apply in relation to central tax as if they are enacted under this Act: PROVIDED that in the case of tax deducted at source, the deductor shall deduct tax at the rate of two per cent. from the payment made or credited to the supplier: PROVIDED further that in the case of tax collected at source, the operator shall collect tax at such rate not exceeding two per cent, as may be notified on the recommendations of the Council, of the net value of taxable supplies: PROVIDED also that for the purposes of this Act, the value of a supply shall include any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier: PROVIDED also that in cases where the penalty is leviable under the Central Goods and Services Tax Act and the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, the penalty leviable under this Act shall be the su....
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....al shall be filed under sub-section (1), unless the appellant has paid- (a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and (b) a sum equal to ten per cent. of the remaining amount of tax in dispute arising from the said order, [subject to a maximum of twenty-five crore rupees]80, in relation to which the appeal has been filed. [PROVIDED that no appeal shall be filed against an order under sub-section (3) of Section 129, unless a sum equal to twenty-five per cent. of the penalty has been paid by the appellant.] (7) Where the appellant has paid the amount under sub-section (6), the recovery proceedings for the balance amount shall be deemed to be stayed. (8) The Appellate Authority shall give an opportunity to the appellant of being heard. (9) The Appellate Authority may, if sufficient cause is shown at any stage of hearing of an appeal, grant time to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing: PROVIDED that no such adjournment shall be granted more than three times to a party d....
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....ated by him in this behalf. (16) Every order passed under this section shall, subject to the provisions of section 108 or section 113 or section 117 or section 118 be final and binding on the parties. 6.9 Likewise, Section 109 of CGST Act, 2017 (as applicable to IGST Act, 2017) provides as follows:- 109. Constitution of Appellate Tribunal and Benches thereof.- (1) The Government shall, on the recommendations of the Council, by notification, constitute with effect from such date as may be specified therein, an Appellate Tribunal known as the Goods and Services Tax Appellate Tribunal for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority. (2) The powers of the Appellate Tribunal shall be exercisable by the National Bench and Benches thereof (hereinafter in this Chapter referred to as ―"Regional Benches"), State Bench and Benches thereof (hereafter in this Chapter referred to as ―"Area Benches"). (3) The National Bench of the Appellate Tribunal shall be situated at New Delhi which shall be presided over by the President and shall consist of one Technical Member (Centre) and one Te....
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....ded that any appeal where the tax or input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fee or penalty determined in any order appealed against, does not exceed five lakh rupees and which does not involve any question of law may, with the approval of the President and subject to such conditions as may be prescribed on the recommendations of the Council, be heard by a bench consisting of a single member. (11) If the Members of the National Bench, Regional Benches, State Bench or Area Benches differ in opinion on any point or points, it shall be decided according to the opinion of the majority, if there is a majority, but if the Members are equally divided, they shall state the point or points on which they differ, and the case shall be referred by the President or as the case may be, State President for hearing on such point or points to one or more of the other Members of the National Bench, Regional Benches, State Bench or Area Benches and such point or points shall be decided according to the opinion of the majority of Members who have heard the case, including those who first heard it. (12) The Government, in ....
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....e a decree made by a court in a suit pending therein, and it shall be lawful for the Appellate Tribunal to send for execution of its orders to the court within the local limits of whose jurisdiction,- (a) in the case of an order against a company, the registered office of the company is situated; or (b) in the case of an order against any other person, the person concerned voluntarily resides or carries on business or personally works for gain. (4) All proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings within the meaning of sections 193 and 228, and for the purposes of section 196 of the Indian Penal Code, and the Appellate Tribunal shall be deemed to be civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973. 112. Appeals to Appellate Tribunal.- (1) Any person aggrieved by an order passed against him under section 107 or section 108 of this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act may appeal to the Appellate Tribunal against such order within three months from the date on which the order sought to be appeal....
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....as sufficient cause for not presenting it within that period. (7) An appeal to the Appellate Tribunal shall be in such form, verified in such manner and shall be accompanied by such fee, as may be prescribed. (8) No appeal shall be filed under sub-section (1), unless the appellant has paid-- (a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him, and (b) a sum equal to twenty per cent. of the remaining amount of tax in dispute, in addition to the amount paid under sub-section (6) of section 107, arising from the said order, [subject to a maximum of fifty crore rupees]87, in relation to which the appeal has been filed. (9) Where the appellant has paid the amount as per sub-section (8), the recovery proceedings for the balance amount shall be deemed to be stayed till the disposal of the appeal. (10) Every application made before the Appellate Tribunal,- (a) in an appeal for rectification of error or for any other purpose; or (b) for restoration of an appeal or an application, shall be accompanied by such fees as may be prescribed." 6.....
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....ion 129A, the CESTAT whether gets to have the jurisdiction, as Section 129A does not distinguish between the order passed by the Commissioner, even if interpreting Customs Act, 1962 as well as IGST Act. There also lies the question whether CESTAT being a creature of the statute i.e. of Customs Act, Central Excise and Finance Act, 1994 can have jurisdiction to interpret IGST Schedule and classification thereunder simply because order was passed by a Commissioner, inter se invoking jurisdiction under Customs Act, 1962 or can just superficially look into provisions of GST, so as not to go beyond the literal text. Further, the question arises whether the subject matter if it involves interpretation of IGST Act, falls within the purview of IGST Act, 2017 (including its schedule) can still confer jurisdiction to CESTAT simply because order was passed by Commissioner without its jurisdiction being challenged, at that stage and the question having been raised before the CESTAT for the first time. It also needs to be decided whether the GSTAT is proper forum to decide the matters which involve classification of Schedule to the IGST Tariff as part of the IGST Act, 2017. 6.14 The extensive....