AAAR Ruling: No ITC on Bill of Entry Issued in the Name of Third-Party Warehouses

M/s Becton Dickinson India Pvt. Ltd., engaged in import and distribution of medical equipment, proposed to import goods through a Third-Party Service Provider (TPSP), who would act as importer of record and file the Bill of Entry (BoE) in its own name and GSTIN. Though the goods were meant for the appellant’s business, the IGST on import would be paid by the TPSP.

The appellant sought to avail ITC of such IGST on the strength of internal agreements or a disclaimer certificate from the TPSP. The AAR denied the benefit, leading to appeal before the AAAR.

Main Issue: Whether ITC on IGST paid on imports can be availed when the Bill of Entry is issued in the name and GSTIN of a third-party importer instead of the claimant.

AAAR’a Ruling: The Authority dismissed the appeal and upheld the AAR ruling. It held that under Section 16 of the CGST Act read with Rule 36(1)(c), possession of a valid Bill of Entry issued in the claimant’s name is a mandatory condition for availing ITC on imports.

In the present case, the TPSP was the importer of record, filed the BoE in its own name, and discharged the customs duty and IGST. Since the Bill of Entry did not bear the appellant’s name or GSTIN, the statutory requirement was not satisfied. The Authority clarified that private contractual arrangements or disclaimer certificates cannot override explicit conditions prescribed under GST law.

Therefore, the appellant was held not entitled to ITC of the IGST paid on such imports, and the appeal was rejected.

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