Refund of IGST Paid - Capital goods imported under EPCG Scheme - The petitioner sought directions to the respondents to re-assess the impugned Bills of Entry issued by the Respondent No.2 by considering the exemption to IGST inserted vide Notification No.79/2017-Cus dated 13.10.2017 to have retrospective effect and grant the refund of duties/taxes paid by the petitioner. The petitioner counsel submitted that from 1st July 2017 when Notification No. 16/2015-Cus came into effect and the fresh amendment dated 13th October 2017 came into effect, petitioner paid IGST amounting to Rs.24,94,53,580/- on the capital goods imported. The customs duty was always exempted and therefore Notification No. 79/2017-Cus dated 13th October 2017 has to be read as clarificatory or curative in nature, in as much as, otherwise it would leave whole class of importers who had imported capital goods uncovered from period 1st July 2017 to 13th October 2017. The court observed that import of capital goods under a valid authorisation under the EPCG Scheme was wholly exempt from payment of any additional duty. Accordingly, Notification No.16/2015-Cus., dated 1st April, 2015 was issued. Notification No.79/2017, dated 13th October, 2017, is clarificatory or curative in nature. Under the circumstances, the action of the respondents in levying Integrated Tax and Compensation Cess on the import of capital goods by the petitioner under a valid authorisation under the EPCG Scheme, not being in consonance with the Foreign Trade Policy 2015-2020 cannot be sustained. The amendment of Notification No. 16/2015 Cus vide Serial No. 1 of Notification No. 79/2017, dated 13th October, 2017, would also apply to imports made during the period 1-7-2017 to 13-10-2017.

Held that:- The Hon’ble Court quashed the Trade Notice 11/2018 dated 30-6-2017 to the extent therein stated that under Chapter 5 importers would need to pay IGST and set aside the impugned OIO dated 29-9-2018 and held that the petitioner is entitled to refund of the amount of Rs.2,38,83,203/ paid by it towards IGST with interest at the statutory rate.