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TMI Blog2021 (2) TMI 921X X X X Extracts X X X X X X X X Extracts X X X X ..... plicant that it is engaged in the manufacture of lead sulphate. The writ applicant claims that it is eligible for the IGST refund claim on the basis of the shipping bills i.e. on the export of goods. According to the writ applicant, the shipping bills filed by an exporter of the goods are deemed to be an application for refund of the integrated tax paid on the goods exported out of India, as provided in Rule 96A of the CGST Rules, 2017. 3.2 The grievance of the writ applicant is that the respondent No.2 has declined to the refund of the IGST amount paid on the shipping bills. The details of which can be found in para 2.5 of the memorandum of the writ-application. 3.3 According to the writ applicant, upon inquiry, it has come to know that the refund has been declined for the reason that the writ applicant had availed drawback at the rate of 1.10%. It is the case of the writ applicant that it has claimed lower rate of drawback in accordance with the Notification No.131/2016 dated 31st October 2016. It was a mistake on the part of the writ applicant to declare in the shipping bills that it had availed higher drawback of selecting A instead of B. According to the writ applicant, it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and circumstances of the case may kindly be granted in the interest of justice for which act of kindness your Petitioners shall forever pray." 2. It appears from the materials on record that the writapplicant wants the respondentauthorities to sanction the refund of Integrated Goods and Service Tax [herein after referred to as the 'IGST'] paid in respect of the goods exported I.e. 'Zero Rated Supplies' vide the shipping Bill No.7452830, dated 19/07/2017. It is the case of the writapplicant that the respondents authorities have illegally withhold the refund of the IGST referred to above. The claim of the writapplicant came to be rejected under Section54 of the Central Goods and Service Tax Act, 2017 [herein after referred to as the 'CGST Act'] read with Section16 of the Integrated Goods and Service Tax Act, 2017. It appears from the materials on record that such claim came to be declined on the ground that the writapplicant had claimed higher duty drawback. According to the writapplicant, there is no legal embargo to avail the drawback at higher rate on one hand and availing refund of the IGST paid with regard to the 'Zero Rated Supply ' I.e. t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ired the petitioner to submit a concordance table mapping between the GST invoices and Shipping Bill. Such concordance table was duly filed by the petitioner on 19.03.2018. 6. The respondents have invoked the Circular No.37/2018-Customs dated 09/10/2018 to deny the refund. In para4.5 of the reply, the respondent authorities have relied on the Notification 131/2016-Cus. (N.T.) dated 31.10.2016, which specified the rate of drawback subject to the notes and conditions mentioned in the notification. It is submitted that in light of the Notification 131/2016-Cus.(N.T.) dated 31/10/2016, the petitioner has not availed the higher duty drawback as the rates of higher and lower duty drawback remains the same I.e. 2 percent. The stance of the respondents is that the condition no.7 of the notification dated 31/10/2016 mentions that if any exporter claims drawback under Column (4) and (5), it means that the drawback includes the Customs, Central Excise and Service Tax component and it's called the Higher drawback. Similarly, if any exporter claims drawback under Column (6) and (7), it means the drawback included Customs only and it's called the Lower drawback. After the introduction of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the integrated tax paid on the goods exported out of India. Section 54 referred to above should be read along with Rule 96 of the Rules. Rule 96(4) makes it abundantly clear that the claim for refund can be withheld only in two circumstances as provided in sub-clauses (a) and (b) respectively of clause (4) of Rule 96 of the Rules, 2017. 27. In the aforesaid context, the respondents have fairly conceded that the case of the writapplicant is not falling within subclauses (a) and (b) respectively of clause (4) of Rule 96 of the Rules, 2017. The stance of the department is that, as the writ-applicant had availed higher duty drawback and as there is no provision for accepting the refund of such higher duty drawback, the writapplicant is not entitled to seek the refund of the IGST paid in connection with the goods exported, I.e. 'zero rated supplies'. 28. If the claim of the writapplicant is to be rejected only on the basis of the circular issued by the Government of India dated 9th October, 2018 referred to above, then we are afraid the submission canvassed on behalf of the respondents should fail as the same is not sustainable in law. 29. We are not impressed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity would apply only to the cases, where the exporters have availed the option to take drawback at the higher rate in place of the IGST refund out of their own volition. In the instant case, the assessee had never availed the option to take drawback at higher rate in place of the IGST refund. In such circumstances, the Circular is not applicable to the facts of the present case. 9. Even as per the Condition No.7 of the Notification 131/2016-Cus. (N.T.) dated 31/10/2016, if the rate indicated in the columns (4) i.e. higher duty drawback and (6) I.e. lower duty drawback are the same, then it shall necessarily imply that the same pertains only to the Customs component and is available irrespective of whether the exporter has availed of the CENVET facility or not. 10. The petitioner had exported Rope Making Machine HSN Code 84794000 which attracts the same rate under both the columns (4) & (6) respectively I.e. 2 per cent. Thus it is evident that the petitioner has claimed drawback of the customs component only for their exports and there arises no question of denying the refund of IGST. The rationale for not allowing the refund of IGST for those exporters, who claim higher duty d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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