Cial Duty Free And Retail Services LTD (Cdrsl) vs. Union Of INDIA
Held
The Court held that the import of goods into duty-free warehouses within the customs area does not constitute a taxable supply. Consequently, the rejection of ITC refund claims and the show cause notices were found to be arbitrary and contrary to GST law and the Constitution.
Facts
The petitioners, duty-free shops at international airports, challenged orders rejecting their claims for Input Tax Credit (ITC) refunds. They argued that goods imported into their warehouses within the customs area do not cross the customs frontier and thus are treated as inter-state trade, not subject to local taxes.
Key Issues
Whether goods imported into a duty-free shop warehouse within the customs area are considered a supply for GST purposes, and whether ITC refunds for such goods are admissible.
Sections Cited
Section 7(2), Section 5, Section 2(10), Section 2(4), Section 12, Section 3(12), Article 286, Section 54(3), Rule 89
AI-generated summary — verify with the full judgment below
Heard together (7 matters)
Read from the judgment's own cause title. This page is filed under one of them.
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL TUESDAY, THE 22ND DAY OF SEPTEMBER 2020 / 31ST BHADRA, 1942 WP(C).No.12274 OF 2020(H) PETITIONER/S: CIAL DUTY FREE AND RETAIL SERVICES LTD (CDRSL) XI/318E, COCHIN INTERNATIONAL AIRPORT BUILDING, KOCHI AIRPORT, COCHIN-68311, REPRESENTED BY ITS DIRECTOR SHRI.SUNIL CHACKO BY ADVS. SRI.P.BENNY THOMAS SRI.G.HARIKUMAR SHRI.AKHIL SURESH RESPONDENT/S: 1 UNION OF INDIA REPRESENTED BY REVENUE SECRETARY, NORTH BLOCK, NEW DELHI-110001 2 THE ASSISTANT COMMISSIONER, CENTRAL TAX AND CENTRAL EXCISE, ALUVA DIVISION, VATHIATTU TOWER, THOTTAKKATTUKARA, ALUVA-683108 3 STATE OF KERALA REPRESENTED BY SECRETARY, TAXES DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695001 R1 BY ADV. SHRI.P.VIJAYAKUMAR, ASG OF INDIA R2 BY SRI.P.R.SREEJITH, SC, CENTRAL BOARD OF EXCISE AND CUSTOMS THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06-07-2020, ALONG WITH WP(C).6850/2018(E), WP(C).12278/2020(H), WP(C).12279/2020(H), WP(C).12280/2020(H), WP(C).12317/2020(L), WP(C).13237/2020(D), THE COURT ON 22-09-2020 DELIVERED THE FOLLOWING:
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE
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