Rule 86(4B) of the CGST Rules 2017 - Goods and Services Tax - GST

Respected Sir/Madam, For the period 2018-19 to 2021-22, The Company was availing the benefit of notification under Notn 78/2017 . The Company claimed refund under Rule 89(4) instead of Rule 89(4B) . The Company is exporting as well as selling goods locally. The Department is contending that this is erroneous refund and seeks recovery of refund since the company has not filed under any other category. According to Circular 125/44/2019 only merchant exporter is required to file application under Rule 89(4B) under the category of Any Other who are availing benefit of N otification No 40/2017 and 41/2017 . hence, i feel the contention of department is completely incorrect and this is not erroneous refund since the calculation will be same under both Rule 89(4) or Rule 89(4B) . Further Circular cannot override the Act. No where in the Act it is mentioned that the refund application has to be done under Any Other Category. I seek experts views on this.