2026-VIL-292-CESTAT-MUM-CU
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CUSTOMS CESTAT Cases

Customs – Demand of Differential IGST, Effect of clarificatory Circular - Appellant imported "Poultry Keeping Machinery" and "parts /equipments of Poultry Keeping Machinery" during the period September 2017 to December 2021 and classified them under CTSH 84362900 & CTSH 84369100, clearing them upon payment of 12% IGST. However, during post-clearance audit, it was observed that the appellant had paid a lower rate of IGST @ 12% under Serial NO. 199 of Schedule II of the IGST Notification No. 1/2017-IGST (Rate) dated 28.06.2017 instead of clearing the parts under Serial No. 453 of Schedule III of the said Notification, which attracts IGST @ 18% - Demand of differential IGST with applicable interest and imposition of redemption fine along with penalties – HELD - By the time the show cause notice was issued, the rate of GST applicable on parts of poultry machinery remained undecided. However, the subsequent developments, including the recommendations of the GST Council and the clarificatory Circular issued on 15.07.2024, which clarified that tariff item No. 84369100 would attract GST @ 12% under Serial No. 199 of the Notification dated 28.06.2017, were not considered by the Commissioner. The beneficial Circulars should be treated as binding on the Departmental officers and should have retrospective application. Further, on the basis of recommendations of GST Council, the issue for the past periods were regularized on “as is where is basis” - The appellant had duly discharged CGST on the parts of Poultry keeping machinery at 12% during the relevant period - The order passed by the Commissioner was unsustainable both in law and facts - The order of the Commissioner is set aside and the appeal is allowed
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