CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)
Jhansi Castle, 4th floor, 7-Cooperage Road, Mumbai - 400 001.
Tel : 91-22-22021288, 22021330 Fax : 91-22-22026684.
E-mail: info@chemexcil.in
Website: http://www.chemexcil.in
EPC:LIC:CBIC:CIRCULAR 8th June 2023
ALL THE MEMBERS OF THE COUNCIL
IMPORTANT
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The implementation of the Hon’ble Supreme Court direction in judgment dated April 28, 2023 in
matter of Civil Appeal No. 290 of 2023 relating to ‘pre-import condition”.-Regarding
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Dear Member,
The CBIC issued Circular No. 16/2023-Cus dated June 07, 2023 regarding the implementation of the Hon’ble Supreme Court direction in judgment dated April 28, 2023 in matter of Civil Appeal No. 290 of 2023 relating to ‘pre-import condition”.
As per the circular the court ruled that imports failing to meet the pre-import condition must pay integrated tax (IGST) and compensation cess.
However, the court also directed the Revenue to allow claims for refund or input credit, which should be submitted to the jurisdictional commissioner within six weeks.
The Circular provides
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A procedure for importers to pay the tax and cess,
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Cancel the Out-of-Charge (OOC), and
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Enable eligibility for input tax credit under the CGST Act.
The following procedure can be adopted at the port of import (POI):
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Importers (including those not limited to the respondents) who are required to pay IGST and Compensation Cess due to non-compliance with the pre-import condition should approach the concerned assessment group at the POI with the relevant details for tax and cess payment, along with applicable interest.
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The assessment group at POI will cancel the OOC and provide a reason in the remarks. The BE will be reassessed to charge the tax and cess, in line with the Supreme Court's judgment.
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The payment of tax, cess, and applicable interest should be made using the electronic challan generated in the Customs EDI System.
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After completing the payment, the port of import will generate a notional OOC for the BE on the Customs EDI
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The procedure specified at (1) to (4) above can be applied once to a BE.
Accordingly, the input credit for the assessed Bill of Entry (BE) will be available, subject to the eligibility and conditions outlined in Sections 16, 17, and 18 of the CGST Act, 2017 and related rules.
If this input tax credit is utilized to pay IGST on outward zero-rated supplies, the registered person may be eligible for a refund of the IGST paid, as per the provisions of the CGST Act, 2017 and relevant rules, subject to the provided conditions and restrictions.
The Chief Commissioners are instructed to guide officers in implementing the procedure and issue suitable notices and orders.
For full details you may refer to said Notice on below link
https://old.cbic.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2023/Circular-No-16-2023.pdf
Feed-backs, if any may can be sent to the council on e-mail ids:- pw@chemexcil.in with copy to rd.ahd@chemexcil.in; for records/ further deliberations, if required.
Thanks and Regards
Prafulla Walhe
Dy. Director
CHEMEXCIL
Encl : Circular No 16-2023
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