On October 15, Office of the Commissioner of Customs (Adjudication), Mumbai passed an appealable order against Gujarat Fluorochemicals Limited demanding duty of Rs. 30,46,87,136/- with applicable interest and penalty equivalent to the duty amount and fine of Rs.19,50,00,000/- under the Customs Act, 1962, according to the exchange filing.
Chemicals Company has submitted fulfilment of certain pre-import conditions vide notification no. 79/2017 dated October 13, 2017 under Customs Tariff Act, 1975 in accordance to which the benefits of exemption from payment of Integrated Goods and Services Tax (IGST) on raw materials imported against Advance Licenses were availed.
The regulatory authority disputed the compliance of pre-import condition on import of specified raw-materials during the period October 13, 2017 to January 9, 2019.
The assessee in the exchange filing has relied on the supreme court judgment on the said issue, which could constitute assessee’s right to take Input Tax Credit for duty paid. “Further, on basis of our assessment, we believe that the consequential demand for penalty and fine is not sustainable,” said Gujarat Fluorochemicals Limited in the exchange filing.
The Company is in the process of preferring an appeal against the said demand before the appellate authority.
