AAR Denies ITC Availment on IGST Paid Under Pre-Notice Consultation u/s 28(1) of Customs Act 1962

The present application, dated April 25, 2025, has been filed by Hansaben Jayantibhai Patel [trade name is Trishul Die and Engineering Works] before the Gujarat Authority for Advance Ruling, Goods and Services Tax (GST) D/5, Rajya Kar Bhavan, Ashram Road, Ahmedabad 380 009. The case was heard on October 16, 2025.

The applicant is registered under the act of GST Act, having GSTIN 24AEQPP0754C1ZL, and is located at 15, Haribhakti Estate, Opp Ganesh Nagar, Pratapnagar Dabhoi Road, Vadodara, Gujarat-390004.

The applicant, Hansaben Jayantibhai Patel, is involved in the business of manufacturing die and mold machines. For business purposes, the applicant had imported a fully automatic mold cleaning machine with parts and accessories through Customs House, Kolkata, from China, vide Bill of Entry No. 4110812 dated January 10, 2023.

The company received a pre-consultation communication from the Additional Commissioner of Customs (Port), Custom House, Kolkata, on April 05, 2024, under section 28(1) of the Customs Act, 1962. The communication stated IGST of 18% will be imposed on goods of CTH 8437.

The GST imposed on the Full Automatic Hardening Cleaning machine with parts & accessories and the Full Automatic Mold Cleaning machine with parts & accessories is at 18%, amounting to Rs. 2,162,076 and Rs. 1,596,543, respectively. On May 10, 2024, the applicant paid the differential duty of Rs. 27,14,559 along with applicable interest of Rs. 6,50,601.

Question Asked by Applicant:

Seeking the Gujarat advance ruling, the applicant has asked the following question:

“Question: Whether the applicant is able to avail the Input Tax Credit (ITC) of Rs. 27,14,559– Integrated Tax paid against the pre-notice consultation letter under Section 28(1) of the Customs Act, 1962, in terms of the timeline prescribed in Section 16(4) of the CGST Act, 2017?”

Answer Given by Gujarat AAR:

Here is the answer given by the Gujarat Authority for Advance Ruling to the question asked by the applicant:

Answer: As per the time limit mentioned in Section 16(4) of the CGST Act, 2017, the applicant is not eligible to claim the Input Tax Credit (ITC) amounting to Rs. 27,14,559-Integrated Tax paid against the pre-notice consultation letter under Section 28(1) of the Customs Act, 1962.