Ajwa Dry Fruit Impex Vs Union of India (Kerala High Court)
The writ petition was filed challenging an order in original dated 30.03.2023 passed by the Joint Commissioner (Appraising Import). The dispute arose from the import of goods declared as “wet dates” (processed dates) under multiple bills of entry. The importer classified the goods under CTH 0804 1020 and claimed exemption from IGST, paying Basic Customs Duty at 20% and Social Welfare Surcharge at 10%, while treating IGST as nil under a specific exemption notification.
During post-clearance audit by Customs Receipt Audit, it was observed that the imported goods, with an assessable value of ₹85,91,498, did not qualify for the IGST exemption claimed. The exemption applied only to “fresh dates,” whereas “wet/processed dates” were liable to IGST at 12% under a different notification. A show cause notice was issued demanding ₹12,57,795 as short-levied IGST along with interest. The petitioner initially did not respond to the notice or attend multiple scheduled hearings, though later sought time and eventually filed a reply. After providing an opportunity for personal hearing, the authority passed the impugned order confirming the IGST demand and applicable interest.
The petitioner challenged the order primarily on jurisdictional grounds. It was argued that even if the exemption claim was incorrect, the authority under Section 28 of the Customs Act did not have the power to assess or demand IGST. According to the petitioner, IGST matters should be dealt with under the IGST Act, and the term “duty” under the Customs Act referred only to customs duty and not IGST. Therefore, it was contended that the order was passed without jurisdiction and was void.
