2017 (9) TMI 388 – DELHI HIGH COURT – 2017 (6) G. S. T. L. 396 (Del.) – Credit of duty paid on import of old dore bar – Validity of Notification dated 17th August 2017 – Rule 44A in the Central Goods and Services Rules, 2017 – Rule 44A is challenged as being ultra vires Section 140 of the CGST Act as well as the rule making powers under Section 164 thereof. It is contended that the impugned Notification is in grossly discriminatory and unreasonable and has imposed the restrictions which are applicable only to imported gold dore bars – Held that: – The Court is of the view that the Petitioners have made out a prima facie case for grant of interim relief in their favour. Further, the balance of convenience is in their favour for grant of int
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cepts notice for Central Board of Excise and Customs/Respondent No. 2. 2. It is pointed out by Mr. Tarun Gulati, the learned counsel for the Petitioners that the challenge in these petitions is inter alia to the impugned Notification dated 17th August 2017, whereby the Respondents have inserted Rule 44 A in the Central Goods and Services Rules, 2017 (CGS Rules) requiring reversal of 5/6th of the CENVAT Credit which had already accrued to the Petitioner on account of payment of additional duty of customs levied under Section 3(1) of the Customs Tariff Act, 1975 ( Countervailing Duty / CVD ) paid at the time of importation of gold dore bar. The said CVD was allowed to be carried forward in full as a transitional measure under Section 140 of t
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g powers under Section 164 thereof. It is contended that the impugned Notification is in grossly discriminatory and unreasonable and has imposed the restrictions which are applicable only to imported gold dore bars. The contention is that the impugned Notification has singled out only imported gold dore bars resulting in imposition of a higher burden of tax on these goods as compared to other imported goods as well as compared to any similar domestic goods. It is submitted out that if the interim orders are not granted then the credit of CVD already availed and utilized for payment of tax on finished goods by the Petitioners would be electronically reversed and they would have to deposit cash. This would be severely prejudicial to them. 4.
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