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The Delhi has given relief to exporters utilising a scheme that allows duty-free importers from paying integrated goods and services tax (IGST) on their imports.
Abhishek Rastogi, partner, Khaitan & Co, who argued the case in the court, said a petition was filed, challenging the move to impose on advance authorisation scheme for exporters. An advance authorisation is issued to allow duty-free of inputs, which are physically incorporated in product. While upfront exemption was extended only to basic Customs duty, exporters were required to pay Hearing the case, the court had issued an interim order to prohibit charging of under the scheme. Following this, the had amended the rules in October to this effect. However, an issue still remained as to what happened to those who had not paid between July and October.
Various petitions came up for final hearing before the court on Monday. The court upheld the eligibility of the benefit with retrospective effect from July, said Rastogi. The court observed the most appropriate course of action for the authorities would be to verify fulfilment of obligations under advance authorisation licences and assess cases accordingly, instead of charging IGST on imports, he said.
