SC to hear Revenue’s review petitions on taxability of duty-free shops

Commissioner of CGST and Central Excise Mumbai East Vs Flemingo Travel Retail Lt (Supreme Court of India)

In a noteworthy legal development, the Hon’ble Supreme Court has revisited the issue of VAT exemption on duty free shops located at the arrival and departure terminals of international airports. The case, Commissioner of CGST and Central Excise Mumbai East v. M/s. Flemingo Travel Retail Ltd [Review Petition (Civil) No. 1017 of 2023, dated August 18, 2023], marks a significant turning point as the Supreme Court allowed the review petition to recall its previous judgment dated April 10, 2023. This reversal paves the way for further consideration of the matter in light of substantial legal grounds presented by the Union Government.

The Hon’ble Supreme Court allowed the review petition by recalling the judgement dated April 10, 2023 wherein the Hon’ble Supreme court held that Duty Free Shops at arrival or departure terminals of Airports are outside the customs frontiers of India and tagged the matter with the appeals mentioned in the signed order.

Facts:

M/s. Flemingo Travel Retail Ltd. (“the Respondent”) has duty free shops at the arrival and departure terminals at the international airports at Mumbai and Delhi.

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