In a recent judgement, the Bombay High Court(HC) allowed a refund of IGST paid on the import of Capital Goods under the Export Promotion Capital Goods Scheme (EPCG Scheme).
M/s Sanathan Textile Pvt Ltd, the petitioner contended that the import of capital goods under the valid authorisation under the Export Promotion Capital Goods Scheme (EPCG Scheme) was wholly exempted from payment of any additional duty under Section 3 of the Customs Tariff Act.
As per amended Notification No. 16/2015-Cus the imports under the EPCG Scheme were exempted from additional duty under Sub Section (7) and Sub Section (9) of the Customs Tariff Act. On the amended period the petitioner paid Integrated Goods and Service Tax (IGST) amounting to Rs.24,94,53,580/- on the capital goods imported by the petitioner.
The question before the Court was about the nature of the amendment. A two-member bench comprising Justice K R Shriram &Justice Arif S Doctor held that the amendment to Notification No. 16/2015-Cus dated 1st April 2015 was clarificatory/curative in nature, consequences have to follow since Petitioner will be entitled to a refund of the IGST paid by Petitioner.
Further held that the refund shall be processed and paid together with interest, if any, within four weeks of Petitioner reversing the entries of availing of the subject credit and debiting the said amount from the credit ledger.
The Court further stated that “the Petitioner shall together with its application file evidence that it has reversed the entry of availing of the subject limit. The refund application is to be filed physically with the concerned authorities. If it can be filed electronically, the concerned Department shall provide the link/portal for the same”.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
