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2023 (10) TMI 148 - HC - GSTRefund of IGST - Zero Rated Supplies - Inaction on the part of the respondents not to sanction the refund claims of IGST on exported goods - Petitioner submitted that, they had inadvertently selected “A” suffixed with the serial number in the drawback notification which provides for higher drawback rates concerning cases where CENVAT facility has not been availed, instead of “B” which provides for lower draw back for cases that are otherwise. It was their case that the excess drawback on account of availing of CENVAT credit facility had been repaid with interest and therefore the petitioner is entitled to the refund of IGST in respect of the shipping bills. HELD THAT:- It is not in dispute that the issue is covered by a decision of this Court in the case of Amit Cotton [2019 (7) TMI 472 - GUJARAT HIGH COURT] which was subsequently followed in the case of Real Prince Spintex Private Limited [2020 (3) TMI 614 - GUJARAT HIGH COURT]. Before the coordinate bench of this Court, it was the case of the petitioner therein that it was eligible to seek refund of IGST in accordance with the provisions of the Act inasmuch as the export supplies were “Zero Rated Supplies”. The Revenue had disputed the claim relying on the very notification dated 31.10.2016 after having considered the issue at hand especially Sections 16 and 54 of the CGST Act, the Division Bench of this Court held the writ-applicant is entitled to claim the refund of the IGST. Relying on a decision of the Supreme Court in the case of J.K. Laxmi Cement Limited v. Commercial Tax Officer, Pali [2016 (9) TMI 721 - SUPREME COURT], the Division Bench held that the circular cannot run contrary to the statutory rule, more particularly, Rule 96. The Division Bench therefore, held that the circular had nothing to do with IGST refund. The petition was allowed directing the respondents to immediately sanction the refund of IGST. The respondents are directed to sanction the refund of IGST paid in context of shipping bills mentioned with simple interest @ of 6% from the date of the shipping bills till the date of actual refund - petition allowed.
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