Order Date – 27 June 2023

Parties: Sunlight Cable Industries Vs The Commissioner of Customs NS II And 2 Ors.

Facts –

• The Petitioner, Sunlight Cable Industries, had filed an application for refund of IGST amount. Tough the petitioner has submitted all the necessary documents, there was no response from the Respondents. On such backdrop, on 26th September 2020, the Petitioner lodged a grievance with the Central Public Grievance Redress And Monitoring System (“CPGRAMS”).
• The Petitioner received an e-mail dated 7th October 2020 that the Petitioner’s grievance has been disposed on the ground that the Petitioner had availed a higher duty drawback on its exports under the said Export Invoice and corresponding Shipping Bill.

Issue –

• Whether the petitioner is eligible for refund of IGST paid in relation to the exports undertaken by it?

Order – 

• The Single Bench of Hon’ble High Court observed that in a similar situation where the claim of the assessee was not a claim to take a drawback at higher rate, the Gujarat High Court in Awadkrupa Plastomech in considering a prior decision in Amit Cotton Industries vs. Principal Commissioner of Customs, observed that is a situation when the claim made by the Petitioner was not to avail double benefit, that is of the IGST refund and the drawback, the Petitioner therein had become entitled to the IGST Refund.
• In the aforesaid circumstances, in the present case, the Petitioner is entitled to a refund of the IGST paid on the exports in question, as it is certain that this is not a case where the Petitioner is availing any double benefit that is of the IGST refund and a higher duty drawback.
• Hence the refunds are granted with simple interest at 7% per annum with effect from 22nd February 2018.

Need for gst in india