The Central Board of Indirect Taxes and Customs (CBIC) on June 07, 2023, issued a notification regarding the Implementation of the pre-import condition.
The following has been stated namely: -
• This is issued via the judgment of UOI and others vs. Cosmo Films Ltd. Which states the mandatory fulfillment of a ‘pre-import condition’ relating to the Advance Authorization scheme.
• The following procedure can be adopted at the Port of Import (POI):
1. For the relevant imports that could not meet the said pre-import condition and are hence required to pay IGST and Compensation Cess to that extent, the importer (not limited to the respondents) may approach the concerned assessment group at the POI with relevant details for purposes of payment of the tax and cess along with applicable interest.
2. The assessment group at POI shall cancel the OOC and indicate the reason in remarks. The BE shall be assessed again so as to charge the tax and cess.
3. The payment of tax and cess, along with applicable interest, shall be made against the electronic challan generated in the Customs EDI System.
4. On completion of the above payment, the port of import shall make a notional OOC for the BE on the Customs EDI System [so as to enable transmission to GSTN portal of, inter alia, the IGST and Compensation Cess amounts with their date of payment (relevant date) for eligibility as per GST provisions].
5. The procedure can be applied once to a BE
• The input credit with respect to such assessed BE shall be enabled to be available subject to the eligibility and conditions for taking the input tax credit.
• In case such input tax credit is utilized for payment of IGST on outward zero-rated supplies, then the benefit of refund of such IGST paid may be available to the said registered person as per the relevant provisions of the CGST Act, 2017.
[Notification No. F.No.605/11/2023-DBK/569]
