Delhi High Court grants interim relief to Gold Dore Bar Importers

Team SoOLEGAL 30 Aug 2017 6:07pm

Delhi High Court grants interim relief to Gold Dore Bar Importers

Recently, Delhi High Court prevented Central Government to carry out any forcible moves in pushing the notice issued under the new CGST regime, which levied exceptional tax and contradicted credit facility, exclusively to Gold Dore bar importers on account of payment of additional duty of customs levied under section 3(1) of the Customs Tariff Act, 1975, or countervailing duty (CVD) excised at the time of importation of Gold Dore Bar.   

Till the next date of hearing, any violent acts performed by Respondent to recover the credit already availed by the petitioners will be considered contempt of court’s stay order.  

Learned Senior Counsel Neeraj Kishan Kaul, representing the petitioners was instructed by PDS Legal's Partner Tarun Gulati, Senior Principal Associate Kishore Kunal, and Associate Prashant Tahiliani.

The applicants questioned the constitutional legitimacy of the impugned notice issued on August 17, whereby the Government required reversal of 5/6th of the CENVAT (Central Value Added Tax) credit which had effectively received by the applicants.      

It was contended that Rule 44A, embedded in the Central Goods and Services Rule through the impugned notice, declared the credit rules unconstitutional and is beyond the legal authorization of Section 140 of the CGST Act and in addition, the Law making powers under section 164.

The petitioners further contended that the impugned order was unconstitutional and grossly discriminatory and has imposed the restrictions exclusively on Gold Dore bar importers. The impugned notification has singled out only imported Gold Dore bar resulted in the imposition of a higher burden of tax on these goods as compared to other imported goods like domestic goods.

The petitioners claimed that they have fulfilled all the conditions and credits of the CVD paid on imported Gold Dore bar accrued to him.

While granting interim relief to the petitioner, the bench comprising Justices S Muralidhar and Pratibha M Singh sought that the petitioners have made out a prima facie case for grant of interim relief in their favour. Further, the balance of convenience is in their favour for grant of interim relief.

The case will be continued on September 25.    

Read the Order Here:

Tagged: Delhi High Court   Gold Dore Bar   Counsel Neeraj Kishan Kaul   CGST Act  
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