Chiripal Poly Films Ltd. Vs Commissioner of Customs (CESTAT Ahmedabad)
CESTAT Ahmedabad allowed three appeals filed by Chiripal Poly Films Ltd. against three Orders-in-Original dated 18.04.2024 concerning imports under the Advance Authorisation Scheme during 13.10.2017 to 09.01.2019. The Principal Commissioner had confirmed total IGST of Rs. 13,90,69,214/- under Section 28(4) of the Customs Act, 1962, appropriated interest of Rs. 12,92,61,984/-, imposed redemption fine of Rs. 2,31,00,000/- under Section 125 and penalty of Rs. 13,90,69,214/- under Section 114A for alleged violation of the pre-import condition. The appellant had already paid the IGST and interest during reassessment pursuant to CBIC Circular No. 16/2023-Cus dated 07.06.2023 and had availed input tax credit of the IGST paid.
The appellant, a manufacturer and exporter, had imported inputs such as plastic granules and additives under Advance Authorisations for manufacture of export products. Notification No. 18/2015-Cus dated 01.04.2015 was amended by Notification No. 79/2017-Cus dated 13.10.2017, making IGST exemption subject to the pre-import and physical export conditions. The pre-import condition remained applicable until Notification No. 01/2019-Cus dated 10.01.2019 omitted it. Customs officers had allowed the IGST exemption on final assessment during the disputed period. Following objections raised by DRI, the appellant challenged the pre-import condition before the Gujarat High Court. The Supreme Court subsequently decided the issue in UOI vs Cosmo Films Ltd and directed payment of IGST while permitting eligible importers to claim refund or input credit. CBIC then issued Circular No. 16/2023-Cus dated 07.06.2023 prescribing reassessment and payment of IGST.
