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2020 (9) TMI 777 - HC - GSTRefund of SGST IGST - export of goods - Zero Rated Supply - rejection of refund on the ground that the petitioner had availed duty drawback on export of the goods @1% of FOB Value do not call for interference under writ jurisdiction - HELD THAT - The authority found that the refund of Input Tax Credit on export of goods and services was without payment of tax for the period August 2017. In fact, the assessee had availed duty drawback at the rate specified in column - All these facts were in the mind of the officer to deny the refund. It is restrained further for commenting further with regard to the eligibility or otherwise qua claim of refund on IGST and CGST, as it would be in the domain of the appellate authority to examine issue, in case the petitioner chooses to avail the remedy, in accordance with law. Petition dismissed.
Issues:
1. Jurisdiction of High Court under Article 226 for refund claim. 2. Eligibility for refund of IGST and CGST on export of goods. 3. Rejection of refund claim by tax authority based on duty drawback availed. Analysis: 1. The petitioner, an exporter of fresh fruits and vegetables registered under the GST Act, sought refund of IGST and CGST under the provisions of the IGST Act and CGST Act. The petitioner contended that despite the exported goods being exempted from tax, they had incurred expenses on packing materials and freight charges, making them eligible for refund. The petitioner approached the court under Article 226, bypassing the appeal process. However, the court emphasized that for judicial review, the petitioner must establish gross illegality, irregularity, lack of jurisdiction, or violation of natural justice, which was not demonstrated in this case. 2. The petitioner had filed refund applications for IGST and CGST with supporting documents, but the tax authority rejected the claim citing the availing of duty drawback on export goods. The court noted that the rejection was based on the duty drawback availed by the petitioner at 1% of FOB value, leading to the inadmissibility of the refund for CGST and IGST. The court refrained from delving into the eligibility of the petitioner for the refund, stating that such matters fall within the appellate authority's purview if the petitioner chooses to pursue the remedy through the appropriate channels. 3. The court concluded that the reason for rejecting the refund claim, i.e., the availing of duty drawback on export goods, did not warrant interference under writ jurisdiction. The tax authority had considered all relevant factors, including the duty drawback availed by the petitioner, in denying the refund. The court upheld the authority's decision and dismissed the writ petition, stating that no grounds for interference were established. The judgment highlighted the importance of following the prescribed legal procedures and avenues for seeking redressal in matters concerning tax refunds and eligibility criteria under the GST laws.
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