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2022 (1) TMI 547 - HC - GSTRefund of IGST - Export of Comber Noil - Zero Rated Supplies - claim of interest @ 18% on the amount of refund of IGST from the date of shipping bill up till the date on which the amount of refund is paid to the petitioner herein - Petitioner claims that the refund has been arbitrarily and illegally withheld by the respondent authorities - HELD THAT:- In the present case, admittedly, the shipping bills have been amended pursuant to the decision of the Superintendent of Customs (Export). It is not in dispute that the Demand Draft of differential drawback aggregating to an amount of ₹ 3,39,245/- has been realized by the respondent Authorities. As held in various decisions, such Circulars are merely in the form of instructions or guidance to the concerned Department and it explains the provisions of drawback, however, it has nothing to do with the IGST refund. More particularly, Rule 96 of GCST Rules, 2017 is explicitly clear on the said aspect. This Court had an occasion to deal with the similar facts in the case of AWADKRUPA PLASTOMECH PVT. LTD. VERSUS UNION OF INDIA [2020 (12) TMI 1116 - GUJARAT HIGH COURT], whereby reliance was made upon the Circular 37/2018-Customs dated 09.10.2018, whereby the competent Authority had withheld the refund of IGST on the ground that exporters had availed the option to take drawback at higher rate in place of the IGST refund out of their own volition. - Refund allowed. Rate of interest - HELD THAT:- There is a direct binding decision of this Court, which is rendered in favour of the assessee holding the assessee entitled to the refund of IGST. Despite the aforesaid decision of this Court in the case of Amit Cotton Industries [2020 (12) TMI 1116 - GUJARAT HIGH COURT], for the reasons best known to the adjudicating authority, the adjudicating authority has failed to abide by the aforesaid decision and has chosen not to take decision with regard to the refund of IGST. To repeat, on going through entire record, the stand of the respondent Authority to withhold IGST based on non-consideration of Judicial pronouncement is equally irrational and arbitrary. The respondent Authorities are directed to immediately sanction the refund towards IGST paid in respect of goods exported “Zero Rated Supplies” made under the shipping bill - respondent authorities directed to grant interest @ 9% from the date when the bills for refund of IGST were raised by the petitioner, till its actual payment. Application disposed off.
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