Customs Excise & Service Tax Appellate Tribunal (CESTAT) has held that IGST (Integrated Goods and Services Tax) levy on import of goods is under IGST Act and not under the Custom Tariff Act.
The matter is related to 346 appeals filed by InterGlobe Aviation, which operate IndiGo airlines. The issue raised in the appeals is about the availability of IGST exemption for aircraft and parts thereof that are re-imported into India after repairs. The company prayed for quashing all these orders passed by the Commissioner of Customs (Appeals), who had upheld the orders of assessment of Bills of Entry, as a result of which all the appeals have been dismissed by the first level of the appellate authority.
The company imported aircraft and when the engines/auxiliary power units or other parts of the aircraft began to develop defects, they were exported out of India for repairs to Pratt & Whitney, an American maintenance and repair company specialising in maintenance of parts/aircraft.