GST
TRT-2025-
Gujarat High Court
Date:-03-02-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 03 February 2023
Parties: M/s Choksi Exports Vs Union of India
Facts –
- The Petitioner, M/s Choksi Exports purchased the goods from Sayan Greemochem Private Limited who had purchased goods from Prince Chemicals, who is placed in the list of L2 risky supplier. and therefore the IGST refund of the petitioner was withheld on the ground of availing of wrong ITC by the petitioner.
Issue –
- Whether the petitioner is entitled to refund?
Order –
- The divisional bench of Hon’ble High Court observed that the petitioner purchased the goods from Sayan Greemochem Private Limited who had purchased goods from Prince Chemicals, who is placed in the list of L2 risky supplier and therefore the IGST refund of the petitioner was withheld on the ground of availing of wrong ITC by the petitioner. It is, however, found from the record that the petitioner has reversed the Input Tax Credit of Rs.11,55,726/- along with penalty and interest towards the said goods purchased.
- Further, none of the provisions of the CGST Act and the IGST Act mandate the petitioner to verify the genuineness of the suppliers of the supplier, even though safeguards is provided to recover the taxes, if not paid or wrongly availed by the petitioner’s supplier or supplier’s supplier.
- It was also observed that the petitioner has filed shipping bills for all the exports and the petitioner is not prosecuted for any offence under the Act or under the existing law and has also reversed the ITC, therefore, there is no point for the respondents herein to withheld the refund.
- Thus, the respondents-authorities are directed to grant the amount of IGST refund to the petitioner, as claimed by the petitioner as provided under Section 54(6) of the CGST Act r/w Rule 91 of the CGST Rules and credit such amount to the petitioner’s account within a period of three weeks from the date of receipt of copy of this order.
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