The Ahmedabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) quashed the Integrated Goods and Service Tax (IGST) demand on the import of nutritional supplements on the ground of limitation.
Neuvera Wellness Ventures P. Ltd, the appellant assessee imported nutritional supplements which are used for the preparations of substances such as Creatine, Nitrates, Glutamine, and Amino Acid.
The assessee appealed against the order passed by the adjudicating authority for confirming the differential IGST demand against the assessee for the import of nutritional supplements.
J.C. Patel and Rahul Gajera, the counsels for the assessee contended that the goods were cleared under physical assessment of the bills of entry by the Customs Officer, therefore, the description of goods, classification, and claim of Notification were very much in the knowledge of the assessing officer.
Also submitted that there was no suppression of fact on the part of the assessee hence the entire demand was time barred.
A.R. Kanani, the counsel for the department relied on the decisions made by the lower authorities and contended that the IGST demand raised by the department was as per the law and liable to be sustained.
The Bench observed that the malafide intention cannot be attributed to the act of the assessee, and the demand for the extended period was not sustainable on the time bar.
The two-member bench comprising Ramesh Nair (Judicial) and Raju (Technical) quashed the IGST demand while allowing the appeal filed by the assessee.
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