Page 67 - GSTL_16 April 2020_Vol 35_Part 3

2020 ] PRINCE SPINTEX PVT. LTD. v. UNION OF INDIA 281
exports goods equivalent to six times the duty saved on capital goods. The peti-
tioner applied for and was issued an authorisation on 31-3-2017, and hence, was
not required to pay any customs duty as well as additional duty of customs on
such import in view of Notification No. 16/2015, dated 1st April, 2015. Commer-
cial invoice was issued by the exporter on 16-5-2017. However, before the actual
import of the goods, the Goods and Services Tax Acts came into force.
15. At this juncture reference may be made to the provisions of sub-
section (2) of Section 7 of the IGST Act, which reads thus :
“7. Inter-State supply. - (1) xxx
(2) Supply of goods imported into the territory of India, till they cross the
customs frontiers of India, shall be treated to be a supply of goods in the
course of inter-State trade or commerce.”
Thus, under Section 7(2) of the IGST Act, import of goods is deemed to be inter-
State supply of goods.
16. Sub-section (1) of Section 5 of the IGST Act, which is relevant for the
present purpose, reads as under :-
“5. Levy and collection. - (1) Subject to the provisions of sub-section (2),
there shall be levied a tax called the Integrated Goods and Services Tax on
all inter-State supplies of goods or services or both, except on the supply of
alcoholic liquor for human consumption, on the value determined under
section 15 of the Central Goods and Services Tax Act and at such rates, not
exceeding forty per cent. as may be notified by the Government on the rec-
ommendations of the Council and collected in such manner as may be pre-
scribed and shall be paid by the taxable person :
Provided that the integrated tax on goods imported into India shall be lev-
ied and collected in accordance with the provisions of section 3 of the Cus-
toms Tariff Act, 1975 (51 of 1975) on the value as determined under the said
Act at the point when duties of customs are levied on the said goods under
section 12 of the Customs Act, 1962 (52 of 1962).
17. Section 3 of the Customs Tariff Act came to be amended with effect
from 1-7-2017 and Integrated Tax became payable under sub-section (7) of Sec-
tion 3 of the said Act and Compensation Cess came to be payable under sub-
section (9) of Section 3 of the said Act.
18. Sub-section (7) and sub-section (9) of Section 3 of the Customs Tariff
Act, read thus :
“(7) Any article which is imported into India shall, in addition, be liable to
integrated tax at such rate, not exceeding forty per cent. as is leviable under
section 5 of the Integrated Goods and Services Tax Act, 2017 on a like article
on its supply in India, on the value of the imported article as determined
under sub-section (8) or sub-section (8A) as the case may be.”
“(9) Any article which is imported into India shall, in addition, be liable to
the goods and services tax compensation cess at such rate, as is leviable un-
der section 8 of the Goods and Services Tax (Compensation to States) Cess,
2017 on a like article on its supply in India, on the value of the imported ar-
ticle as determined under sub-section (10) or sub-section (10A) as the case
may be.”
19. Vide Notification No. 26/2017-Cus., dated 29th June, 2017 issued in
exercise of powers under Section 25 of the Customs Act, vide Serial No. 82, Noti-
fication No. 16/2015-Cus., dated 1st April, 2015 came to be amended with effect
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