Case tittle | Chemico Synthetics Ltd VS Union of India |
Court | Delhi High Court |
Honourable Judge | Justice S.Muralidhar Justice Prathiba M. Singh |
Citation | 2017 (09) GSTPanacea 17 HC Delhi W.P. (C) NOS. 8422 TO 8424 OF 2017 |
Judgment Date | 27-September-2017 |
In the case, Mr. Sanjeev Narula, representing the Central Government, acknowledged the notice for Respondents in W.P.(C) 8422/2017 and W.P.(C) 8423/2017. Additionally, Mr. Vinod Diwakar, as counsel, accepted notice for Respondents in W.P.(C) 8424/2017.
Upon a request by the Petitioner’s counsel, the Central Board of Excise and Customs (CBEC) is added as Respondent No.4 in all writ petitions. The parties are directed to file an amended memo within two weeks to reflect this amendment.
Mr. Sanjeev Narula, representing the Central Government, acknowledges receipt of notice for W.P.(C) 8422/2017 and W.P.(C) 8423/2017. Mr. Vinod Diwakar, on behalf of the Respondents, accepts notice for W.P.(C) 8424/2017.
Following a request from the Petitioner’s counsel, the Central Board of Excise and Customs (CBEC) is added as Respondent No.4 in all three writ petitions. The parties are directed to submit an amended memo within two weeks.
The petitions share similar requests, seeking permission for the Petitioner to import duty-free goods under Advance Authorization (AA) licenses issued before July 1, 2017, provided the licenses are still valid.
Notices were accepted by Mr. Sanjeev Narula, representing the Central Government, for W.P.(C) 8422/2017 and W.P.(C) 8423/2017, and by Mr. Vinod Diwakar for W.P.(C) 8424/2017.
At the request of the Petitioner’s counsel, the Central Board of Excise and Customs (CBEC) is added as Respondent No.4 in all petitions. The parties’ amended memo is to be filed within two weeks.
The petitions seek permission for the Petitioner to conduct duty-free imports under Advance Authorization (AA) licenses issued before July 1, 2017, which are still valid.
The Petitioner’s counsel highlighted a previous court order (dated September 11, 2017, in W.P.(C) No.6534/2017) where similar relief was granted to another party, allowing them to import raw materials against their AAs under specific conditions.
In light of the issues raised in these petitions, the following interim directions have been issued:
(i) Each petitioner is granted permission to clear imported consignments comprising inputs necessary for fulfilling export orders placed before July 1, 2017, without any additional levies. This allowance is subject to the quantities and values specified in the Advance Authorization (AA) licenses issued to them before July 1, 2017.
In light of the petitions at hand, the following interim directions have been issued:
1. Each Petitioner is allowed to clear imported consignments that constitute inputs necessary for fulfilling export orders placed before July 1, 2017, without any additional levies. This clearance is subject to the quantity and value specified in the Advance Authorization (AA) licenses issued to them before July 1, 2017.
2. The clearance mentioned above is contingent upon:
Verification by the Customs Department to ensure conformity with the quantity and value specified in the Advance Authorization licenses.
Ensuring that the amount of credit available aligns with the AA licenses issued before July 1, 2017.
These directions aim to facilitate the timely clearance of imports essential for meeting pre-July 1, 2017 export obligations, under the specified conditions of AA licenses.
Each petitioner is granted permission to clear imported consignments that constitute inputs necessary for fulfilling export orders placed before July 1st, 2017. This clearance is permitted without additional levies, subject to the quantity and value specified in the Advance Authorization (AA) licenses issued to them prior to July 1st, 2017.
The clearance mentioned above is contingent upon:
Verification by the Customs Department to ensure conformity with the quantity and value stipulated in the AA licenses.
Confirmation that the corresponding credit is available in accordance with the AA licenses issued before July 1st, 2017.
These interim directions are additionally subject to each petitioner submitting an undertaking, in the form of an affidavit filed with this Court within one week from today. This affidavit should affirm that if the petitioner does not ultimately succeed in their writ
The petition states that failing to fulfill export obligations may result in the petitioner being liable to pay the entire Integrated Goods and Services Tax (IGST) along with interest, as determined by the court at the final disposal of the writ petition.
Additionally:
The petitioner must provide the Customs Department with a complete list of its Advance Authorizations (AAs) valid as of July 1, 2017, and a list of export orders placed before July 1, 2017.
This interim direction applies only to imports made by the petitioner to fulfill export orders placed before July 1, 2017, and does not extend to any orders placed thereafter.
This summary outlines the conditions and obligations imposed by the court on the petitioner regarding its export commitments and associated tax liabilities. The petitioner is directed by the court to fulfill its export obligations failing which it must pay the entire IGST due, plus interest determined by the court at the final disposal of the writ petition. The petitioner must provide the Customs Department with a list of its valid Advance Authorizations (AAs) as of July 1, 2017, and a list of export orders placed before that date. Importantly, the interim directions apply only to imports made by the petitioner for fulfilling export orders placed before July 1, 2017, not to any subsequent orders. Replies to the petition must be filed within eight weeks, and any rejoinders must be filed before the next hearing. Additionally, the court has issued further directions based on a separate order related to the petition, including the communication of import details to Customs Commissionerates upon submission by the petitioner’s counsel. It seems like you’ve provided excerpts from a legal document related to a petition concerning export obligations and customs duties. If you need assistance with summarizing or analyzing specific aspects of this document, feel free to ask!
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