Hello Sirs, Madams ,
Since the last couple of months, all advance licence users across industry are being sent notices by DRI to return IGST exemption availed from 13 Oct 17. DRI is of the opinion that 'pre import' condition is not met.As per them all imports need to be made prior to exports , and imports and exports need to be made under the same advance licence.The pre import condition is no where explained .DRI explains that the provision of replenishment no longer exists. The relief of IGST exemption under advance licence no longer exists
Our economy is plagued with port strikes, transport strikes, reservation related bandhs, bank strikes and challenges on ICEGATE. Though advance authorizations reflect in customs systems, officers at customs demand original licences during import clearances. Everybody imports at various ports simultaneous which are hundreds of kilometers apart , how do we import simultaneously under the same licence and comply to the preimport condition ? TRAs need to be processed when imports are from SEZs since NSDL and Customs systems are not aligned. And we invite countries to invest in India and speak of ease of doing business ...
It is not clear if the preimport condition applies only when IGST exemption is claimed or if it also applies when BCD exemption alone claimed. The supreme court judgement a few days ago mentioned ...“When there is ambiguity in exemption notification, which is subject to strict interpretation, the benefit of such ambiguity cannot be claimed by the subject/assessee, and it must be interpreted in favour of the revenue,” ....
This refects risk of litigation from the BCD perspective as well . Should we stop using advance licences ? Will we be able to meet export targets set by the Govt when on the other hand the WTO is questioning the incentives from the DGFT ?
Request views of CAclubindia on the matter . Kindly share suggestions so that we as industry tide over this challenge.
CAclubindia
