Cial Duty Free And Retail Services LTD. (Cdrsl) vs. Union Of INDIA
Held
The Court held that goods within the customs area do not constitute import in the sense of crossing the customs frontier, and therefore, the liability for customs duty and IGST is not triggered until removal from the customs area. The Court found the rejection of ITC refund and the show cause notices to be arbitrary and contrary to GST law and the Constitution.
Facts
The petitioners, duty-free shops operating at international airports, challenged orders rejecting their claims for refund of Input Tax Credit (ITC). 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. The authorities alleged import of goods and non-payment of SGST on sales to international passengers.
Key Issues
Whether goods stored within a customs area in a duty-free shop constitute an import triggering tax liability, and whether the rejection of Input Tax Credit (ITC) refund claims is justified under the GST regime.
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
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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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