M/S.Vedanta Limited vs. Union Of INDIA
Held
The Court held that the conditions imposed on AA licenses regarding IGST exemption were not arbitrary or unconstitutional. It reasoned that the differential treatment of Basic Customs Duty (BCD) and IGST was necessary due to the nature of IGST as a flowing credit in the supply chain, unlike BCD.
Facts
The petitioner, Vedanta Limited, challenged conditions imposed on Advance Authorisation (AA) licenses concerning the exemption of Integrated Goods and Services Tax (IGST) on imports. These conditions, introduced via notifications after the GST regime, included a 'pre-import' condition and required physical exports.
Key Issues
Whether the 'pre-import' condition and other restrictions on IGST exemption for imports under Advance Authorisation licenses are arbitrary and unconstitutional, and if differential treatment of BCD and IGST is permissible.
Sections Cited
Section 3(7), Section 3(9)
AI-generated summary — verify with the full judgment below
1 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 29.10.2018 (Reserved on 05.10.2018) CORAM :
THE HONOURABLE MRS.JUSTICE J.NISHA BANU W.P(MD)Nos.18435 to 18438 of 2018 and W.M.P(MD)Nos.16317 to 16322 of 2018 M/s.Vedanta Limited, Having office at SIPCOT Industrial Complex, Madurai Bye pass Road TV Puram, Tuticorin-628002 Rep by its Authorised Signatory J.Janakiram ... Petitioner in all cases vs. 1)Union of India, Through Secretary, Ministry of Finance (Department of Revenue), No.137, North Block, New Delhi-110 001. 2)The Directorate General of Foreign Trade, Through the Director of General Foreign Trade, North Block, New Delhi-110 001. 3)The Department of Revenue Intelligence, Through the Deputy Director, Kolkata Zonal Unit, Ho-CHi-Minh Sarani, Kolkata-700001. 4)The Central Board of Indirect Taxes and Customs, Through Chairman, North Block, New Delhi-110001. ... Respondents in all cases Prayer in W.P.18435/18 : Writ Petition is filed under Article 226 of the Constitution of India, for issuance of a Writ of Declaration, declaring that condition imposed under Section 2(c) of Notification No.79/2017-Customs, dated 13 October 2017 issued by the 1st respon
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