'Delay by authorities can't result in denial of benefits'

We have fulfilled the export obligation against our EPCG authorisation and submitted the redemption application to our JDGFT. There has been a delay in redemption due to staff shortage in the JDGFT’s office. In the meantime, the Customs have issued notice to us saying that unless we submit the redemption letter they will enforce our bond and BG. How to deal with the situation?

Please bring the facts to their attention and send a copy of your redemption application and ask them to wait till the JDGFT issues the redemption letter. In the case of Ramsays Corporation Ltd. Vs. CC, Chennai-IV [2002 (138) ELT 372 (Mad.)], the Madras High Court has held that  delay in producing the EODC by the concerned ADGFT authority could not result in denial of benefits under the EPCG scheme when the assessee / importer had duly discharged the export obligation. Delay on the part of a public authority cannot result in denial of the benefit extended in larger public interest.

We refer to the Chatroom column (Business Standard, August 9, 2022) regarding doing away with the space availability certificate (SAC). You have referred to CBIC Circulars no.19/2018-Cus dated June 18, 2018 and 10/2020-Cus dated February 7, 2020. Since these circulars were withdrawn by the CBIC through Circular no.25/2020-Cus dated May 18, 2020, does your reply still hold?

Yes. The Circulars I had referred to dealt with RFID sealing of goods to be deposited in or removed from Customs Bonded Warehouses. The reference to doing away with the SAC was incidental. The circulars were rescinded only because the CBIC wanted to review and issue a consolidated circular. So, the position I had taken regarding the SAC does hold. In any case, an importer filing a bill of entry for deposit of goods in his own bonded warehouse would know whether space is available and there is no point asking him to produce a SAC.

We regularly import samples free of charge. We also export samples free of charge. The values are very small. Yet our bankers insist that we should help mark off the entries in the IDPMS or EDPMS by making or receiving remittances. Is there any stipulation of the minimum amount up to which the bankers can straightway write off the IDPMS or EDPMS entries?

The RBI has not stipulated any amount up to which the banks can write off the IDPMS or EDPMS entries automatically. Given this position, I suggest that while filing the bills of entry or shipping bill for free of charge samples, you tick the right box to show that no payments will be made or received against the imports/exports. Thus, the transactions will not enter the IDPMS or EDPMS.

We have some bills of entry for goods imported in 2018. Can we take ITC of the IGST paid now?

Yes. The time limit for taking ITC at Section 16(4) of the CGST Act, 2017 applies only to invoices or debit notes and not for bills of entry. 

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