2021 (4) TMI 1213 - HC - GST

Refund of IGST - goods exported out of India - grievance of the petitioner is that exports were made in September 2017 but till date IGST is not refunded to the petitioner - HELD THAT - The issue involved decided in case of M/S. PRECOT MERIDIAN LIMITED VERSUS THE COMMISSIONER OF CUSTOMS THE ASSISTANT COMMISSIONER OF CUSTOMS 2020 (1) TMI 90 - MADRAS HIGH COURT where it was held that respondents are directed to refund the amount of IGST paid by the petitioner for the goods exported from India which are zero rated supplies within a period of six weeks from the date of receipt of a copy of this order. The first respondent herein is directed to sanction the refund of IGST of Rs. 2, 54, 449/- paid by the petitioner in respect of the goods exported i.e Zero Rated Supplies made vide shipping bills mentioned herein above along with entitled interest @ 9% to the petitioner till the date of actual refund within a period of six weeks from the date of receipt of a copy of this order - petition allowed.

Summary

Issues:
1. Refund of IGST paid by the petitioner for exported goods.

Analysis:
The Writ Petition was filed to direct the respondent to sanction the refund of IGST paid by the petitioner for exported goods. The petitioner, a merchant exporter, fulfilled the requirements under Rule 96 of the CGST Rules, 2017, by filing shipping bills and export documents. The petitioner highlighted the provisions of Section 54 of the CGST Act, 2017, and Section 16 of the IGST Act, 2017, which mandate the refund of IGST paid on exported goods. Despite exporting goods in September 2017, the petitioner had not received the IGST refund, leading to the filing of this Writ Petition.

The counsel for the petitioner relied on a previous judgment by the Madras High Court, emphasizing the entitlement of exporters to IGST refunds upon fulfilling the necessary conditions, irrespective of circulars issued by authorities. The judgment referred to a Supreme Court decision stating that circulars cannot override statutory provisions. Additionally, a Division Bench of the Gujarat High Court upheld the petitioner's right to IGST refund, emphasizing the obligation of authorities to refund the amount paid by exporters. Based on these precedents, the Court directed the respondent to refund the IGST amount of Rs. 2,54,449 paid by the petitioner for the exported goods within six weeks, along with 9% interest until the actual refund date.

In conclusion, the Court allowed the Writ Petition, citing the applicability of previous judgments emphasizing exporters' rights to IGST refunds as per statutory provisions. The respondent was directed to refund the IGST amount paid by the petitioner for the exported goods, in line with the legal entitlement of exporters to such refunds, within a specified timeframe and with applicable interest.