The Gujarat Authority of Advance Ruling (AAR) ruled in respect of the eligibility for IGST refunds when applicant avails duty exemption but opt to pay IGST on import under Advance Authorization.
The applicant, M/s Balkrishna Industries, Mumbai, are one of the leading manufacturers and exporters of Tyres mainly used for special applications such as agricultural tractors and their various attachments, industrial and construction equipment etc.
They export more than 85% of their production all over the world including the developed countries viz. UK, USA, France, Germany, Australia etc.. They have been accredited as an ISO- 9001-2000-Quality Management System and ISO 14001:2015 standard for Environmental Management Systems are accredited with prestigious status as “Four Star Export House”.
The applicant sought the advance ruling on the issue whether availing exemption under Notification No.79/2017-Cus dated October 13, 2017 in respect of additional duty of customs under sub-Section (1), (3) and (5) of Section 3, anti-dumping duty under section 9A, but opting to pay IGST on the import of goods under Advance Authorization, would tantamount to availing the benefits of exemption under Notification No.79/2017-Cus dated October 13, 2017, as contemplated under Rule 96(10) of CGST Rules, 201 and if the answer to the above question is negative, then whether the applicant is allowed to export goods on payment of IGST and claim refund thereof under Rule 96(10) of CGST Rules, 2017.
The coram consisting of Sanjay Saxena and Mohit Aggarwal ruled that the importers who are directly importing supplies on which benefit of reduced tax incidence or no tax incidence under certain notifications specified under rule 96(10) has been availed, shall not be eligible for refund of integrated tax paid on export.
“We hold that the availing exemption under Notification No.79/2017-Cus dated 13.10.2017 in respect of additional duty of Customs under sub-Section (1), (3) and (5) of Section 3, anti-dumping duty under section 9A, but opting to pay IGST on the import of goods under Advance Authorization, would tantamount to availing the benefits of exemption under Notification No.79/2017-Cus dated 13.10.2017, as contemplated under Rule 96(10) of CGST Rules, 2017. Consequently, the applicant is not eligible to claim refund thereof under Rule 96(10) of CGST Rules, 2017, as amended,” the AAR ruled.
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