GST
TRT-2025-
New Delhi High Court
Date:-06-10-22
In:-
Issue Favourable to Tax Payer ?:-
Order date: 06 October 2022
Facts
- The Petitioner, M/S KISHAN LAL KURIA MAL INTERNATIONAL, was denied refund of IGST paid on export of goods, as Drawback was claimed at the higher rates under column A of the Drawback Schedule prescribed in the notification.
- Petitioners submitted that even though drawback rates prescribed in respect of goods exported were higher in column A (1%) than the rates prescribed in column B (0.15%), yet the rate at which IGST (18%) was paid on the goods exported was even much higher than the said rate in column A. Therefore, they did not have any benefit in claiming drawback under Column A at the cost of forgoing their IGST refund and the drawback was claimed under Column A because of the confusion and lack of technical knowledge prevalent during the transitional phase about working of the new indirect tax laws.
- Accordingly, petitioner seek directions to the respondents to grant refund of IGST paid on goods exported during the Transitional Period (July-September, 2017) after deducting the differential amount of duty drawback, along with appropriate interest on such refund from the date of the shipping bill till the date of actual refund.
- The Court relied on the judgment of Gujarat High Court in M/s Amit Cotton Industries v. Principal Commissioner of Customs, 2019 (29) G.S.T.L.200 (Guj.) wherein it was held that the circular is dated 9th October 2018, whereas the export took place on 27th July 2017. Over and above the same, the circular explains the provisions of the drawback and it has nothing to do with the IGST refund. Thus Rule 96 of the Rules, 2017, is very clear and the writ-applicant is entitled to claim the refund of the IGST.
- Hence, the Court held that since the facts in the present cases are pari materia to the case in M/s Amit Cotton Industries (supra), the present writ petitions are allowed directing the Respondent authorities to grant refund of IGST paid on the goods exported by the Petitioners during the transitional period, after deducting the differential amount of duty drawback along with appropriate interest at the rate of 7% p.a. on such refund from the date of the shipping bill till the date of actual refund.
Download Case Law
