TMI Blog2021 (9) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... ] where it was held that While granting refund to the petitioners, the petitioners will be granted interest at the rate of 7% simple, from the date, when the shipping bills were filed by them, till the date of actual refund, which, in this case, ought not to go beyond 26.04.2021. The respondents are directed to carry out a verification exercise of the claim made by the petitioners within 12 weeks from today and submit a report to this Court. The petitioners shall be at liberty to file the relevant documents as may be called for by the jurisdictional authority in support of its claim. In case the respondents find the claim of the petitioners to be correct, the refund shall be processed by the respondents without awaiting further orders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the Transitional Period, with 6% interest from the date of the shipping bill till the date of actual refund. 2. It is the case of the petitioners that the petitioners are the exporters of invertors, transformers and allied products. In the course of their business, between 01.07.2017 to 30.09.2007 (which is the transitional period between the pre and post GST Regime), they had made various exports falling under Tariff Item 8504 of the Notification No. 13/2016-Cus.(N.T.), dated 31.10.2016 (as amended by Notification No. 41/2017-Cus.(N.T.) dated 26.04.2017) (hereinafter referred to as Drawback Schedule ) on the payment of Integrated Goods of Services Tax (IGST). The Drawback Schedule prescribed identical rates of Duty Drawback under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of time, the petitioners declared that they would forego the claim of IGST refund. During the transitional period, Petitioners have inadvertently claimed benefit under the wrong provision, since there was lack of clarity with respect to the refund of IGST. Should we deny the benefit simply for this mistake when the cardinal rule is that taxes should not exported? The concept of zero -rated exports envisaged under GST is designated to achieve this objective. In the current scenario, exporters pay IGST and apply for refund. Thus, for wrong input given at the time of claiming drawback should not deprive them of this valuable right. We can't immune to the fact that taxpayers have faced difficulties in understanding the complexity of GST pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the exporters would not voluntarily opt for the claim of drawback under Column A at the cost of foregoing IGST paid on exports, where the duty drawback rates under Column A and B were same, the exporters would have received the same amount of drawback even if they would have mentioned B in their shipping bills instead of A for claiming drawback. Since the condition for not claiming IGST refund is not applicable to cases where duty drawback has been claimed under Column B, exporters would have received IGST refund also on mentioning B . Therefore, exporters did not have any benefit in claiming drawback under Column A. It is not pointed out by the Respondents that the Petitioners derived any undue advantage by their aforesaid mistak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same is covered by the judgment of this Court in TMA International (supra). 8. We have considered the submissions made by the learned counsels for the parties. 9. As the issue raised in the present petition is otherwise settled by this court in its judgment in TMA International (supra), we direct the respondents to carry out a verification exercise of the claim made by the petitioners within 12 weeks from today and submit a report to this Court. The petitioners shall be at liberty to file the relevant documents as may be called for by the jurisdictional authority in support of its claim. In case the respondents find the claim of the petitioners to be correct, the refund shall be processed by the respondents without awaiting furth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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