Mayur Uniquoters Limited Vs Commissioner (Appeals) (CESTAT Delhi)
Summary: The CESTAT Delhi dismissed appeals filed by Mayur Uniquoters Limited and JLC Electroment Pvt. Ltd., holding that interest paid on delayed payment of IGST on imported goods was correctly recovered and could not be refunded. Both appellants had imported goods under Advance Authorisations issued by DGFT, claiming exemption under Notification No. 18/2015-Cus dated 01.04.2015, as amended by Notification No. 79/2017-Cus dated 13.10.2017. After realizing that the pre-import condition for IGST exemption had not been fulfilled, they voluntarily paid IGST along with interest, with the Customs EDI system calculating the interest. The Tribunal held that a refund claim cannot be used to modify an assessment, including self-assessment, particularly where the assessment had not been challenged. Relying on the principles in Mafatlal Industries and ITC Ltd., it further held that the judgment in Mahindra & Mahindra, concerning additional customs duty in the pre-GST regime, could not govern IGST. IGST levied on supplies in the course of importation is a tax on supply and not a customs duty. Since Section 20 of the IGST Act makes Section 50 of the CGST Act applicable to IGST, interest is payable on delayed IGST payment, including on imports. The impugned orders were upheld and both appeals were dismissed.
Background of the Appeals
The CESTAT Delhi considered two appeals involving the common question whether the appellants were entitled to refund of interest paid on delayed payment of IGST on imported goods.
