JLC Electromet Private Limited Vs Commissioner (CESTAT Delhi)
CESTAT Delhi held that interest as per section 50 of the Central Goods and Services Tax Act, 2017 [CGST Act] is applicable on delayed payment of IGST in the course of imports. Accordingly, interest confirmed u/s. 28AB of Customs Act not justified.
Facts- The appellant had imported and cleared goods using 13 Advance Authorisations without paying either the basic customs duty or the integrated goods and services tax on them. The Directorate General of Revenue Intelligence investigated the matter and found that while the appellant had correctly availed exemption from BCD, it had wrongly claimed exemption from IGST because exemption from IGST under the scheme was available subject to „actual user‟ condition which the appellant had, undisputedly, not fulfilled.
On being pointed out, the appellant had paid IGST on the imported consignments with interest. Thereafter, DRI issued a show cause notice dated 3.10.2019 which culminated in the impugned order.
The appellant does not contest that it was liable to IGST and had incorrectly claimed the exemption and therefore, it paid the IGST on being pointed out by DRI. The only contention is that although it had paid IGST with delay, it was not liable to pay any interest on the ground that IGST is an Additional Duty of Customs levied u/s. 3 of the Customs Tariff Act, 1975 and the provisions of interest do not apply to Additional Duty of Customs
