ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 23.08.2025
CESTAT Chennai- Customs authorities cannot independently demand IGST without DGFT recalling
In a significant ruling, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chennai, has delivered a judgment that provides much-needed clarity and relief to importers under the Advance Authorization Scheme (AAS). The case involved M/s. Suryadev Alloys and Power (P) Ltd., which challenged the imposition of IGST, interest, redemption fine, and penalty for alleged violations of the “pre-import condition” during the GST transition phase. The tribunal’s decision has far-reaching implications for importers and exporters navigating the complexities of customs law and GST compliance.
Background of the Case
The dispute arose from imports made by M/s. Suryadev Alloys under the Advance Authorization Scheme between October 13, 2017, and January 9, 2019. The appellant claimed IGST exemption under Customs Notification No. 18/2015-Cus, even after the introduction of the “pre-import condition” via Notification No. 79/2017-Cus. The customs authorities alleged non-compliance with the pre-import condition and issued a demand for IGST, interest, redemption fine, and penalty. The appellant argued that the pre-import condition was impossible to fulfill for authorizations issued before October 13, 2017, as exports had already been completed prior to imports. Additionally, the appellant highlighted that the jurisdictional DGFT had issued redemption letters for all Advance Authorizations, confirming the fulfillment of export obligations.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT Chennai
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