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Government of India
Ministry of Finance
Department of Revenue
(Central
Board of Indirect Taxes & Customs)
*****
Circular No. 21/2019
-Customs
Room No.227B, North Block, New Delhi.
Dated the 24th July, 2019
To,
All Principal Chief Commissioners/ Chief Commissioners of Customs/ Customs
(Preventive.)
All Principal Chief Commissioners/ Chief Commissioners of Customs & Central Tax
All Principal Commissioners/ Commissioners of Customs/ Customs (Prev.)
All Principal Commissioners/ Commissioners of Customs and Central Tax
Madam/ Sir,
SUB: Clarification regarding applicability of Notification No. 45/2017-Customs dated 30.06.2017 on goods which were exported earlier for exhibition
purpose/consignment basis - reg.
Representations have been received for clarifying the issue of applicability of Notification no. 45/2017-Customs on the re-import of goods which had been earlier exported
either for participation in exhibition or on consignment basis.
2. Matter has been examined. Circular No. 108/27/2019–GST dated 18.07.2019 has
clarified that the activity of sending / taking the specified goods (i.e. goods sent / taken out of
India for exhibition or on consignment basis for export promotion except the activities
satisfying the tests laid down in Schedule I of the CGST Act, 2017) out of India do not
constitute supply within the scope of Section 7 of the CGST Act as there is no consideration at
that point in time. Since such activity is not a supply, the same cannot be considered as ‘Zero
rated supply’ as per the provisions contained in Section 16 of the IGST Act, 2017. Also that
there is no requirement of filing any LUT/bond as required under section 16 of IGST Act, 2017
for such activity of taking specified goods out of India.
3. Situation mentioned at Sl. No. 1(d) of the
Notification no. 45/2017-Customs dated
30.06.2017 require payment at the time of re-import of integrated tax not paid initially at the
time of export, for availing exemption under the said notification. As in the case of re-import
of specified goods, no integrated tax was required to be paid for specified goods at the time of
taking these out of India, the activity being not a supply, hence the said condition requiring
payment of integrated tax at the time of re-import of specified goods in such cases is not
applicable. It is clarified that such re-import cannot be taken to be falling under situation at Sl.
No. 1(d) of the said Notification. Such cases will fall more appropriately under residuary entry
at Sl. No. 5 of the said Notification even though those specified goods were exported under
LUT, in view of the fact that the activity of sending / taking specified goods out of India is
neither a supply nor a zero rated supply.
44. It is also clarified that, even in cases where exports have been made to related or distinct
persons or to principals or agents, as the case may be, for participation in exhibition or on
consignment basis, but, such goods exported are returned after participation in exhibition or
the goods are returned by such consignees without approval or acceptance, as the case may be,
the basic requirement of ‘supply’ as defined cannot be said to be met as there has been no
acceptance of the goods by the consignees. Hence, re import of such goods after return from
such exhibition or from such consignees will be covered by entry at Serial no. 5 of the
Notification No. 45/2017 dated 30.06.2017, provided re-import happens before six months
from the date of delivery challan.
5. The above clarification shall apply to all pending matters involving similarly placed
exporters and importers, as the case may be.
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6. Difficulties, if any, may be brought to the notice of the Board.
F. No. 450/131/2017-CusIV
Yours faithfully
(Zubair Riaz)
Director
(Customs)
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