Page 87 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : STERLITE TECHNOLOGIES LTD. 325
Sub-section (1) of Section 5 of the Integrated Goods and Services Tax Act,
2017 states that, subject to the provisions of sub-section (2), there shall be
levied a tax called the integrated goods and services tax in all inter-state
supplies of goods or services or both, except on the supply of alcoholic liq-
uor 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 recommenda-
tions of the Council and collected in such manner as may be prescribed 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, on the value 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.
9. The Customs Tariff Act, 1975 was amended by The Taxation Laws
Amendment Act, 2017 by introducing sub-section (7) in Section 3 of the Customs
Tariff Act, 1975 with effect from 1-7-2017 to enable collection of Integrated Tax on
the goods imported. The relevant provisions of the amended Section 3 of the
Customs Tariff Act, 1975 reads as follows;
(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 arti-
cle on its supply in India, on the value of the imported article as determined
under sub-section (8).
(8) For the purposes of calculating the Integrated Tax under sub-section
(7) on any imported article where such tax is leviable at any percentage of
its value, the value of the imported article shall, notwithstanding anything
contained in Section 14 of the Customs Act, 1962, be the aggregate of -
(a) the value of the imported article determined under sub-section
(1) of Section 14 of the Customs Act, 1962 or the tariff value of
such article fixed under sub-section (2) of that section, as the
case may be; and
(b) any duty of customs chargeable on that article under Section
12 of the Customs Act, 1962 (52 of 1962), and any sum charge-
able on that article under any law for the time being in force as
an addition to, and in the same manner as, a duty of customs,
but does not include the tax referred to in sub-section (7) or
the cess referred to in sub-section (9).
(12) The provisions of the Customs Act, 1962 and the rules and regula-
tions made thereunder, including those relating to drawbacks, refunds and
exemption from duties shall, so far as may be, apply to the duty or tax or
cess, as the case may be, chargeable under this section as they apply in rela-
tion to the duties leviable under that Act.
10. The relevant provisions of the Customs Act, 1962 are reproduced
below;
SECTION 12. Dutiable goods. - (1) Except as otherwise provided in this
Act, or any other law for the time being in force, duties of customs shall be
levied at such rates as may be specified under the Customs Tariff Act, 1975,
or any other law for the time being in force, on goods imported into, or ex-
ported from, India.

GST LAW TIMES  16th July 2020  87