The Customs, Excises, Service Taxes Appellate Tribunal (CESTAT), Delhi Bench while providing relief to Interglobe Aviation allowed the Integrated Goods and Service Tax (IGST) Exemption available on re-import of repaired parts or aircraft into India.
The appellant, M/s Interglobe Aviation Limited filed 415 raising the issue in respect of the availability of IGST exemption provided at serial no. 2 in the General Exemption Notification No. 45/2017 dated June 30, 2017, as amended by Corrigendum Notification dated July 22, 2017, to aircrafts and parts thereof that are re-imported into India after repairs.
The Appeals seek the quashing of the 415 orders passed by the Commissioner of Customs (Appeals) that uphold the orders of assessment of Bills of Entry, as a result of which all the appeals have been dismissed by the Commissioner (Appeals).
The Appellant had claimed exemption at the time of re-import from payment of basic customs duty for aircrafts/ parts under a Notification No. 50/2017 dated June 30, 2017.
The dispute is in regard to the levy of integrated tax on the re-import of aircrafts/ parts.
The Appellant had claimed exemption from integrated tax under the Exemption Notification for the reason that the importer is required to only pay duty of customs on the fair cost of repairs and the cost of insurance and freight charges, both ways.
The Customs Authorities, however, did not agree on this issue with the Appellant, as according to them the Appellant was not entitled to full exemption from integrated tax since the phrase duty of customs at serial no. 2 of the Exemption Notification, includes both the basic customs duty as also integrated tax.
Thus, according to the Authorities, the appellant was required to pay integrated tax, in addition to the basic customs duty, on the fair cost of repairs and the cost of insurance and freight charges, both ways.
The Coram headed by the President, Justice Dilip Gupta while setting aside all impugned orders against the appellant held that the Appellant is entitled to exemption from payment of integrated tax under the Exemption Notification on re-import of repaired parts/ aircrafts into India.
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