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2019 (11) TMI 819 - HC - GSTRefund of IGST paid - export of goods - additional tax paid due to variation of rates - petitioner claimed refund of ₹ 94,42,39,026/- along with the additional tax paid due to variation of rates in London Metal Exchange - respondents have refunded ₹ 94,42,39,026/-. But they are not in a position to refund the balance amount of ₹ 2,02,94,956/- as the entire process is system managed - Circular No.40 of 2018-Customs F.No.450/119/2017-Cus-IV, dated 24.10.2018 - HELD THAT:- The present case on hand is also similar to that of the problem which was faced by the respondents in similar circumstances. When there is no provision in the electronically managed system, they should have visualised the situation prior to its introduction to do away with these anomalies and provided solution to the same. When the issue of refund like the present one was dealt with by the Hon'ble High Court of Gujarat at Ahmedabad in M/S AMIT COTTON INDUSTRIES THROUGH PARTNER, VELJIBHAI VIRJIBHAI RANIPA VERSUS PRINCIPAL COMMISSIONER OF CUSTOMS [2019 (7) TMI 472 - GUJARAT HIGH COURT], the High Court has given a direction to the respondents to refund the IGST paid in regard to the goods exported i.e., 'Zero rated Supplies', with 7% Simple Interest in view of circular dated 09.10.2018 and Rule 96 of Central Goods and Services Tax Rules, 2017. When the process is completely system managed, the respondents are supposed to visualise the complications and provide solutions to do away with the anomalies. The very object of encouraging exporters and augmenting the foreign currency will be defeated by such hiccups. Therefore, considering the judgment of Hon'ble High Court of Gujarat as well as the circular issued by the fourth respondent dated 24.10.2018, a direction is given to the respondents to refund the additional IGST paid by the petitioner to the tune of ₹ 2,02,94,956/- within a period of four weeks from the date of receipt of a copy of this order. Petition disposed off.
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