In re Becton Dickinson India Private Limited (GST AAAR Tamil Nadu)
Background: Becton Dickinson India Private Limited (“the Appellant”) engaged in manufacturing, importing, and trading medical devices under a Limited Risk Distributorship (LRD) arrangement with its overseas group companies. Imports were made through multiple Tamil Nadu ports (Chennai Sea, Air-Cargo, and FTWZ), with applicable customs duties, including Basic Customs Duty (BCD), Social Welfare Surcharge (SWS), and Import IGST. The Appellant availed Input Tax Credit (ITC) for import IGST, paying additional differential duties when actual profit margins exceeded the Arm’s Length Price (ALP) per the LRD agreement.
The issue arose because some Customs authorities (Air Cargo and FTWZ) required payment of differential IGST via TR-6 challans rather than re-assessed Bills of Entry, unlike the Chennai Sea port, which allowed re-assessment through Bills of Entry. The Appellant sought to claim ITC on IGST paid via TR-6 challans, contending these could be treated as documents similar to Bills of Entry.
Issues Under Appeal:
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Whether ITC can be availed on import IGST paid through TR-6 challans under Section 16(2) of the CGST Act, read with Rule 36 of the CGST Rules.
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Whether such ITC eligibility is subject to the time limit under Section 16(4) of the CGST Act.
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Whether ITC based on re-assessed Bills of Entry is subject to Section 16(4) time limits.
Key Legal Provisions Considered:
