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2020 ] PRINCE SPINTEX PVT. LTD. v. UNION OF INDIA 279
5.6 It was, accordingly, urged that Serial No. 1 of Notification No.
79/2017-Cus., dated 13th October, 2017 inserting clause (iii) in Notification No.
16/2015 viz. the whole of the Integrated Tax and Goods and Services Tax Com-
pensation Cess leviable thereon under sub-section (7) and sub-section (9) of Sec-
tion 3 of the Customs Tariff Act; has to be read as being effective from 1-7-2017. It
was, accordingly, urged that the petition deserves to be allowed.
6. From the facts and contentions noted hereinabove, it emerges that
the refund claim of the petitioner has been rejected on the ground that Notifica-
tion No. 33/2015-2020, dated 13-10-2017 of the Ministry of Commerce and Noti-
fication No. 79/2017-Cus., dated 13-10-2017 of the Ministry of Finance under
which such imported goods were exempted from payment of IGST, came into
force only on 13-10-2017, but the petitioner had filed the bill of entry on 3-8-2017.
As there was no notification exempting import of such goods from payment of
IGST, it has been held that IGST was chargeable on the capital goods imported
by the petitioner under the EPCG Scheme.
7. For the purpose of examining the validity of the petitioner’s claim for
exemption from payment of IGST in respect of capital goods imported by it on
the strength of the authorisation held by it under the EPCG Scheme prior to the
issuance of Notification No. 79/2017-Cus. exempting import of such goods from
payment of IGST, it may be necessary to refer to the relevant provisions of the
Foreign Trade Policy and the notifications issued in this regard from time to
time.
8. In the exercise of powers under Section 5 of the Foreign Trade (De-
velopment and Regulation) Act, 1992, the Central Government has notified the
Foreign Trade Policy 2015-20 vide Notification No. 1/2015-20 which came into
effect from 1st April, 2015. Chapter 5 of the Foreign Trade Policy bears the head-
ing “Export Promotion Capital Goods (EPCG) Scheme”. Paragraph 5.00 thereof,
provides the objective of the scheme and reads thus :
“The objective of the EPCG Scheme is to facilitate import of capital goods
for producing quality goods and services to enhance India's export compet-
itiveness.”
9. Para 5.01 of Chapter 5 which is relevant for the present purpose
reads thus :-
“5.01 EPCG Scheme.
(a) EPCG Scheme allows import of capital goods for preproduc-
tion, production and post-production at Zero customs duty.
Alternatively, the Authorisation holder may also procure Cap-
ital Goods from indigenous sources in accordance with provi-
sion of paragraph 5.07 of FTP. Capital goods for the purpose
of the EPCG Scheme shall include :
(i) Capital Goods as defined in Chapter 9 including in
CKD/SKD condition thereof;
(ii) Computer software systems;
(iii) Spares, moulds, dies, jigs, fixtures, tools & refractories for
initial lining and spare refractories; and
(iv) catalysts for initial charge plus one subsequent charge.
(b) Import of capital goods for Project Imports notified by Central
Board of Excise and Customs is also permitted under EPCG
Scheme.
GST LAW TIMES  16th April 2020  185