Gujarat high court has given some relief to the exporters who have been charged for illegally availing tax exemptions as the court has told the anti-smuggling intelligence agency to behold their action against them.
Directorate of Revenue Intelligence (DRI) was asked by the Gujarat high court to stay for any strict actions against the petitioners or the exporters and also asked to review the pre-import conditions in the case.
According to the amendment in GST law, that all those exporters having advance authorization licenses must duly follow pre-import conditions in order to take away the tax exemptions.
The pre-import conditions were analyzed by the high court bench of Justices Akil Kureshi and BN Karia and then asked the Directorate of Revenue Intelligence to hold the actions against the exporters.
Tax experts stated that “It is very encouraging that the Gujarat High Court ordered that no coercive action can be taken against the petitioners .”
The GST council earlier made a panel for studying the issues of exporters and panel is underway to report the actual condition of the export industry under GST.
Most of the exporter community is currently going through tough times as there are a lot of refund issues stuck on the behalf of the tax department and between the exporters have crossed the pre-import condition otherwise then the actual GST law.
