Page 68 - GSTL_16 April 2020_Vol 35_Part 3

282 GST LAW TIMES [ Vol. 35
from 1-7-2017, which to the extent the same is relevant for the present purpose,
reads thus :
“In the said notification;
(a) In the opening paragraph, in clause (ii) for the words and fig-
ure “under section 3” the words and figures and brackets
“under sub-sections (1), (3) and (5) of section 3” shall be sub-
stituted;
(b) In paragraph 2, -
(i) in condition (6), for the words and figure “under section 3”, the
words and figures and brackets “under sub-sections (1), (3) and (5)
of section 3” shall be substituted.”
20. Thus, while Notification No. 16/2015-Cus., dated 1st April, 2015
exempted the imported goods covered by a valid authorisation issued under the
EPCG Scheme from the whole of the additional duty leviable under Section 3 of
the Customs Tariff Act, by virtue of its amendment vide Notification No.
26/2017-Cus., the exemption from additional duty came to be limited to the ad-
ditional duty under sub-sections (1), (3) and (5) of Section 3 of the Customs Tariff
Act.
21. Vide Trade Notice No. 11/2018, dated 30-6-2017 issued by the
DGFT, under Chapter 5 of the Foreign Trade Policy it was stated that importers
would need to pay IGST and take input tax credit as applicable under GST Rules.
22. Since vide Notification No. 26/2017, the words and figures “sub-
sections (1), (3) and (5) of Section 3” of the Customs Tariff Act were inserted, the
petitioner was not granted the benefit of exemption from payment of IGST, de-
spite the fact that it was an additional duty introduced by way of sub-section (7)
and sub-section (9) of Section 3 of the Customs Tariff Act. The petitioner there-
fore paid the IGST.
23. Subsequently, vide Notification No. 33/2015-2020, dated 13th Octo-
ber, 2017, issued in exercise of powers conferred by Section 5 of Foreign Trade
(Development and Regulation) Act, 1992, read with paragraph 1.02 of the For-
eign Trade Policy, 2015-20, as amended from time to time, the Central Govern-
ment made amendments in the Foreign Trade Policy 2015-2020. Para 2 of the said
notification, to the extent the same is relevant for the present purpose, reads
thus :
“2. Para 5.01(a) is amended to read as under :
“5.01(a) EPCG Scheme allows import of capital goods for pre-
production, production and post-production at Zero customs duty.
Capital goods imported under EPCG scheme for physical exports are
also exempt from whole of the Integrated Tax and Compensation
Cess leviable thereon under the sub-section (7) and sub-section (9) re-
spectively, of section 3 of the Customs Act, 1975 (51 of 1975) as may
be provided in the notification issued under Department of Revenue.
Alternatively, the Authorisation holder may also procure Capital
Goods from indigenous sources in accordance with provisions of
paragraph 5.07 of FTP.
24. In terms of the original Para 5.01(a) of the Foreign Trade Policy,
EPCG Scheme allowed import of capital goods for pre-production, production
and post-production at zero customs duty. Thus, by virtue of the above notifica-
tion, the words “Capital goods imported under EPCG scheme for physical ex-
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