SC admits appeal to decide duty of customs referred in Exemption Notification No. 45/2017 would include IGST or not
Case Details: Commissioner of Customs v. Interglobe Aviation Ltd.
The assessee was a scheduled airline operator engaged in the business of transportation of passengers and goods by air within and outside India. It was re-importing the aircraft and spare parts sent outside India for repairs and maintenance. It claimed exemption under Notification No. 45/2017 – Customs dated 30-6-2017 from payment of IGST on goods reimported by it in India after repair. The Customs authorities refused the same on the ground that IGST was leviable on the fair cost of repairs and cost of insurance and freight.
The Delhi CESTAT allowed exemption on such re-importation of goods by the assessee holding that IGST was not leviable on goods re-imported into India. However, the assessee was still being compelled to clear goods on payment of IGST resulting in financial losses. Thus, it filed the writ petition before the Delhi High Court.
The Honorable High Court observed that in the absence of specific mention of ‘IGST ‘ and ‘Compensation Cess’ in Column (3) under Serial No. 2 of the impugned exemption Notification, only the Basic Customs Duty on the fair cost of repair charges, freight and insurance charges would be payable. The IGST and Compensation Cess would be wholly exempted. The assessee could not be denied such exemption on reimport of repaired air-crafts and spare parts.
Against the above order, the department filed an appeal before the Honorable Apex court. The final order of the Supreme Court is awaited.
