Input tax credit of 'IGST' paid on imported goods not admissible: Unbelievable/unintended but true

1. Please compare Section 3(7) “liability to pay” with a CTA “levy” under Section 3(1). "Additional duty" under section 3(1) of the Customs Tariff Act (popularly called CVD) is an independant levy under the CTA which Additional Duty is collected by borrowing the provisions of the "Customs Act" ( old Section 3(7), new 3(12) of CTA). Hence 3(1) duty is only a duty under Section (3) (1) of the CTA, (Not under the Customs Act) which Additional Duty is collected by the machinery provisions of the Customs Act. That is precisely the reason behind Section 30 of the SEZ Act specifying that "customs Duty" as well as "duties" under the "CTA" - thus differentiating duty under the Customs Act with the 'Duties' under CTA. So, Customs duty under Section 12 of the Customs Act is thus different from the independent "duty" under Section 3(1) of the CTA.

2. 'integrated Tax' is a defined term. the levy is under IGST ALONE. section 3(7) of Customs Tariff Act is NOT a Counterveiling duty, unlike the duty under section 3(1) of the Customs Tariff Act, which is a "levy" under the CTA.

RG_Subramanian RG_Subramanian 12/06/2017