ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 24.09.2025
CESTAT Ahmedabad Sets Aside IGST Demand and Penalties
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
In a landmark decision, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad, has delivered justice to AMNS Ports Hazira Ltd. (formerly Essar Bulk Terminal Pvt. โ Ltd.) and its employee, Appellant, by setting aside the IGST demand of โน12.12 crore and associated penalties imposed by the Commissioner of Customs, Ahmedabad. โ This ruling marks a significant victory for the appellants, who were embroiled in a dispute over the import of capital goods under the Export Promotion Capital Goods (EPCG) scheme. โ
Background of the Case
AMNS Ports Hazira Ltd., a provider of port services, imported capital goods such as Ship Unloader, Barge, and Railmount under EPCG Authorization No. โ 5230026626 dated January 21, 2019. โ The company availed exemptions from Basic Customs Duty (BCD) and IGST under Customs Notification No. โ 16/2015-Cus, as amended by Notification No. โ 79/2017-Cus. The authorization required the company to fulfill an export obligation equivalent to six times the duty saved within six years, i.e., by January 20, 2025. โ
The dispute arose when the Revenue alleged that the company had availed IGST exemption despite receiving payments in rupee terms for services rendered, which, as per the amended notification, disqualified them from claiming the exemption. โ The Commissioner of Customs imposed a demand for IGST, confiscated the imported goods, and levied penalties on both the company and its employee.
Source: CESTAT Ahmedabad
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