Order Date – 27 November 2024

Parties: M/S. ELITE INTERNATIONAL THROUGH ITS PROPRIETOR SH. ROHAN ARORA Vs COMMISSIONER OF CGST DELHI NORTH AND ORS.

Facts – 

• The Petitioner, M/s Elite International, had effected three exports. Out of the three exports, two of them were realised in US Dollars. They also submitted that a certificate placed on our record, issued by the Federal Bank, which certifies that the amount has been received from a convertible Vostro account. 
• An application for refund was thereafter made and during the consideration of which, a Show Cause Notice dated 04 August 2022 came to be issued proposing to reject that claim.

Issue – 

• Whether the petitioner is eligible for refund on export which has been received from a convertible Vostro account?

Order – 

• The Divisional Bench of Hon'ble High Court observed that all documentation including the eBRCs which were absent at the first stage of adjudication had been duly filed and submitted.
• As is manifest from the Circular No.88/07/2019-GST[F.NO. CBEC-20/16/04/2018-GST], dated 1 February 2019, the respondents themselves have rendered a clarification that if export proceeds against specific exports have been realised in Indian Rupees albeit routed through a freely convertible Vostro account of a non-resident bank situated in any country other than a member country of the Asian Clearing Union or Nepal and Bhutan, the refund would not be liable to be denied.
• Hence the Order would not sustain in light of the Circular enabling an exporter to receive remittances from duly verified Vostro accounts. Accordingly, present petition is allowed.