Cosmo Film case: Gujarat HC order to provide relief to importers

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Key Points

In what could come as relief for many Indian Importers who were under investigation by the Directorate of Revenue Intelligence (DRII) and respective jurisdictional commissioners for allegedly availing dual benefitsspecifically, exemption from Integrated Goods and Services Tax (IGST) and a rebate on the output side of exports, the Gujarat High Court Thursday held that one of the notification will have only prospective effect and reviewed its earlier decision to remove findings on interest applicability...

Additionally, the court made specific amendments to various sections of its prior order, correcting incorrect dates and deleting paragraphs related to the imposition of interest on IGST..

This revision is significant as it provides relief to Indian importers who would have otherwise faced liability for interest in transactions that are revenue-neutral, Rastogi said..

This development, coupled with the Gujarat High Courts revised judgment, provides much-needed clarity on how import transactions should be rectified and reassessed..

The timing of the courts order is especially fortuitous for Indian exporters, who can now adjust their systems and correct past import transactions by reassessing their bills of entry..

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