CBIC circular on pre-import violation cases

The circular is useful because it applies not only to the parties who litigated on the pre-import issue but also to those who did not do so

The Central Board of Indirect Taxes and Customs (CBIC) has issued circular no.16/2023-Cus, dated June 7, 2023, prescribing the procedures for the payment of Integrated Goods and Services Tax (IGST) and compensation cess (CC) by the importers who have violated the pre-import condition and taking input tax credit (ITC) of the same, in respect of imports made between October 13, 2017, and January 9, 2019, without payment of IGST and CC under advance authorisations. The circular is issued following the directions of the Supreme Court in the case of Cosmo Films Ltd. [2023 (5) Centax 286 (SC)].

The circular is