Public interest and pre-import clauses

IGST on imported goods is levied and collected in accordance with Section 3(7) of the Customs Tariff Act, 1975

Many exporters have asked me whether the pre-import condition for inward shipment under advance authorisation without payment of Integrated Goods and Services Tax (IGST) could be challenged in the courts and, if so, on what grounds.

It must be understood that there is no right to claim an exemption, unless the government notifies this in the official gazette. It may exempt goods of any description from all or any part of the customs duty leviable. These may be granted without conditions or subject to any such as specified in the notification. These conditions may be required to be fulfilled before or