Refund of IGST on exported goods couldn't be withheld due to excess claim of duty drawback: High Court
[Amit Cotton Industries v. Principal Commissioner of Customs [2019] 107 taxmann.com 167 (Gujarat)]
The applicant was a registered person who was running a cotton ginning mill. It exported its goods and claimed refund of the IGST paid in respect of such goods. The revenue authorities held that
applicant was not entitled to refund of IGST paid on goods exported as it had availed of higher duty drawback in respect of those goods. The applicant had filed writ petition to sought sanction of refund of IGST paid for exported goods.
The High Court observed that as per the CGST Rules, 2017 shipping bill filed by the assessee would deemed to be refund application of IGST paid for goods exported out of India. Further, refund could be withheld only when request was received by the jurisdictional Commissioner regarding the same or when the goods were exported in violation of the Customs Act, 1962 as determined by proper officer of Customs. There was neither any provision nor any circular or instruction under GST law which would restrict IGST refund for reason that higher rate of drawback was claimed. The High Court held that the applicant was entitled to claim IGST refund in respect of goods exported and directed revenue authorities to immediately sanction the refund amount along with 7 per cent interest from date of shipping bills till date of actual refund.
[Amit Cotton Industries v. Principal Commissioner of Customs [2019] 107 taxmann.com 167 (Gujarat)]
The applicant was a registered person who was running a cotton ginning mill. It exported its goods and claimed refund of the IGST paid in respect of such goods. The revenue authorities held that
applicant was not entitled to refund of IGST paid on goods exported as it had availed of higher duty drawback in respect of those goods. The applicant had filed writ petition to sought sanction of refund of IGST paid for exported goods.
The High Court observed that as per the CGST Rules, 2017 shipping bill filed by the assessee would deemed to be refund application of IGST paid for goods exported out of India. Further, refund could be withheld only when request was received by the jurisdictional Commissioner regarding the same or when the goods were exported in violation of the Customs Act, 1962 as determined by proper officer of Customs. There was neither any provision nor any circular or instruction under GST law which would restrict IGST refund for reason that higher rate of drawback was claimed. The High Court held that the applicant was entitled to claim IGST refund in respect of goods exported and directed revenue authorities to immediately sanction the refund amount along with 7 per cent interest from date of shipping bills till date of actual refund.
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