Breif Issue :

FACTS OF THE CASE:

The petitioner named M/s Prince Spintex Pvt. Ltd. was engaged in the business of manufacturing of cotton yarn through the spinning process, after processing the finished goods are supplied to India as well as exported outside India. As per the Export Promotion Capital Goods (EPCG) Scheme import of capital goods for pre-production, production and post-production are allowed at zero customs duty subject to a specified condition. The petitioner as per the Export Promotion Capital Goods (EPCG) Scheme entered into a contract with the M/s Itema, Italy. However, the machine for which the contact was made is taxable @5%, which is the basic tax rate under the Customs Tariff Act. The petitioner was authorized and on the basis of this, he claimed the exemption of Integrated Goods and Service Tax (IGST) on which the exemption was not granted.

The issue raised in this case was whether the petitioner is liable for the exemption or not