2017 Taxo.online 38

W.P.(C) 8677/2017 & C.M. No. 35637/2017 (stay) dated 11.10.2017

JINDAL DYECHEM INDUSTRIES (P) LTD.

UNION OF INDIA & ORS.

2017

GST

Integrated Goods & Services Tax Act, 2017

S. Muralidhar, Justice & Prathiba M. Singh, Justice

In favour of assessee

High Court

Delhi

Import of Gold Bars – Relaxation Denied – Relief packages announced for exporters in a press release held on 06.10.2017 – Held-up refund of IGST paid on goods exported outside India in July would begin to be paid within the next 4 days i.e., 10.10.2017 through a formal notification – Producing a copy of an e-challan showing payment of IGST in respect of Bill of Entry dated 10.10.2017 for import of gold bars from Abu Dhabi – Petitioner not permitted to clear the goods without such payment and his protest to the authorities was to no avail – Held: – The Petitioner will not hereafter be required to pay IGST in respect of the imports of gold bars made by it in terms of the Advance Authorizations(AA) issued to it – Interim relief granted subject to the Petitioners furnishing to the Respondents a Letter of Undertaking that the clearance of the imported goods in terms of the AA will be subject to the final result of the present petition.

Represented by: – 

Petitioner: – Mr. R. K. Handoo, Mr. Yoginder Handoo & Mr. Manish Shukla, Advocates. 

Respondent: – Mr. Sanjeev Narula, CGSC, Mr. Abhishek Ghai, Ms. Aastha Jain & Mr. Rishi Jain, Advocate.

Order: –  

1. Notice. Mr. Sanjeev Narula, the learned CGSC, accepts notice for the Respondents. He has placed before the Court a Press Release issued by the Ministry of Finance dated 6th October 2017 setting out the relief package announced for exporters by the Goods and Service Tax Council („GST Council‟) at its 22nd Meeting held on 6th October 2017. Inter alia, the following relief measures announced were announced:-  

“a. Within the next 4 days i.e. by 10.10.2017 the held-up refund of IGST paid on goods exported outside India in July would begin to be paid. The August backlog would get cleared from 18.10.2017 and refunds for subsequent months would be handled expeditiously. Other refunds of IGST paid on supplies to SEZs and of inputs taxes on exports under Bond/LUT, shall be processed from 18.10.2017 onwards. For this, the Council agreed to suitably empower Central and State GST officers so that exporters get refunds from one authority only. Related matters of settlement of funds are being resolved.  

1. To prevent cash blockage of exporters due to upfront payment of GST on inputs etc. the Council approved two proposals, one for immediate relief and the other for providing long term support to exporters. Immediate relief is being given by extending the Advance Authorization (AA) / Export Promotion Capital Goods (EPCG) / 100% EOU schemes to sourcing inputs etc. from abroad as well as domestic suppliers. Holders of AA / EPCG and EOUs would be treated as deemed exports under Section 147 of CGST/SGST Act and refund of tax paid on such supplies given to the supplier.” 
2. Mr. Narula states that the formal notification incorporating the above relief measures was to be issued within four days thereafter. He states that in all probability the notification will be issued in the immediate future. 
3. Mr. Handoo, the learned counsel appearing for the Petitioner, states that notwithstanding the above relief measures announced by the GST Council on 6th October 2017, the situation on the ground remains the same. He has produced before the Court a copy of an e-challan showing payment of IGST to the tune of Rs. 58,58,345/- by the Petitioner in respect of Bill of Entry dated 10th October 2017 for import of gold bars from Abu Dhabi. He submits that the Petitioner was not permitted to clear the goods without such payment and that the Petitioner‟s protest to the authorities was to no avail. 
4. The Court directs the Petitioner to place the above facts on an affidavit to be filed not later than 3 days from today with an advance copy to Mr. Narula, who will seek instructions thereon before the next date of hearing. 
5. In the meanwhile, it is directed that, in view of the aforementioned press release dated 6th October 2017, which prima facie makes no distinction as regards the Advance Authorisations (AA) issued prior to or after 1st July 2017, the Petitioner will not hereafter be required to pay IGST in respect of the imports of gold bars made by it Petitioner in terms of the AAs issued to it. 
6. The above interim relief is granted subject to the Petitioner furnishing to the Respondent authorities a letter of undertaking that the clearance of the imported goods in terms of the AA will be subject to the final result of the present petition. Further, the goods imported would be subject to verification by the Customs Department in accordance with law. 
7. List on 28th November 2017. 
8. Order Dasti under the signature of the Court Master.