Sale of goods from Duty Free shops located at International Airports constitutes 'export': High Court
[Sandeep Patil v. Union of India- [2019] 110 taxmann.com 155 (Bombay)]
The assessee sells goods to international passengers from duty free shops (DFS) situated in international airport at Mumbai. Such goods are mainly imported or procured from SEZ units in India and are sold before they cross customs barriers. The assessee had challenged the order passed by the
Dy.Commissioner denying the refund of ITC accumulated on account of services received by duty free shops at the airport.
The High Court observed that export means 'taking goods out of India to a place outside India'. Supply by assessee from DFS to the outbound passenger constitutes export. Warehoused goods supplied before clearance for home consumption is neither supply of goods nor supply of services. Sales from DFS to arriving passengers are sales from the customs area as the goods have neither crossed customs frontier nor cleared for home consumption by DFS and, hence, customs duty and IGST are not payable by DFS. The High Court, thus, sets aside the order passed by the Dy. Commissioner and held that the sale of goods from DFS located at International Airports constitutes 'export of goods' and, hence, assessee is entitled to get refund of input tax credit.
[Sandeep Patil v. Union of India- [2019] 110 taxmann.com 155 (Bombay)]
The assessee sells goods to international passengers from duty free shops (DFS) situated in international airport at Mumbai. Such goods are mainly imported or procured from SEZ units in India and are sold before they cross customs barriers. The assessee had challenged the order passed by the
Dy.Commissioner denying the refund of ITC accumulated on account of services received by duty free shops at the airport.
The High Court observed that export means 'taking goods out of India to a place outside India'. Supply by assessee from DFS to the outbound passenger constitutes export. Warehoused goods supplied before clearance for home consumption is neither supply of goods nor supply of services. Sales from DFS to arriving passengers are sales from the customs area as the goods have neither crossed customs frontier nor cleared for home consumption by DFS and, hence, customs duty and IGST are not payable by DFS. The High Court, thus, sets aside the order passed by the Dy. Commissioner and held that the sale of goods from DFS located at International Airports constitutes 'export of goods' and, hence, assessee is entitled to get refund of input tax credit.
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