2019 (1) TMI 303 - HC - GST

Refund of IGST - Zero rated supply - Reference was made to Circular No.37/2018-Customs dated 9.10.2018 to submit that the same does not relate to IGST and would have no applicability to the facts of the present case. It was submitted that in any case, the petitioner has already returned back the differential drawback amount, and hence, there is no impediment in the way of the respondents in granting the refund to the petitioner. Notices issued.

Issues involved:
Refund under section 16 of Integrated Goods and Services Tax Act, 2017 for zero-rated supply; Claiming refund under rule 96 of Central Goods and Services Tax Rules, 2017; Withholding refund under sub-rule (4) of rule 96; Interpretation of Circular No.37/2018-Customs dated 9.8.2018 and 9.10.2018.

Refund under section 16 of Integrated Goods and Services Tax Act, 2017 for zero-rated supply:
The petitioner's advocate highlighted section 16 of the IGST Act, 2017, which allows a registered person making zero-rated supply to claim a refund. It was argued that the petitioner fulfilled all requirements for claiming a refund under rule 96 of the CGST Rules, 2017. The advocate emphasized that the claim for refund can only be withheld in specific circumstances mentioned in sub-rule (4) of rule 96, none of which applied in this case. The petitioner referred to an email from the IGST Section, Customs House, Mundra, citing Circular No.37/2018-Customs dated 9.8.2018, which mentioned that exporters relinquished their IGST/ITC claim by declaring drawback claim serial numbers suffixed with A or C. The petitioner contended that Circular No.37/2018-Customs dated 9.10.2018 was irrelevant to the present case. Additionally, the petitioner had already returned the differential drawback amount, removing any obstacle to granting the refund.

Claiming refund under rule 96 of Central Goods and Services Tax Rules, 2017:
The petitioner's advocate asserted that all prerequisites for claiming a refund under rule 96 of the CGST Rules had been met. It was argued that the petitioner was entitled to the refund as per the provisions of the rule, and there were no grounds for withholding the refund as per the stipulations of sub-rule (4) of rule 96.

Withholding refund under sub-rule (4) of rule 96:
The petitioner contended that the conditions for withholding a refund under sub-rule (4) of rule 96 were not applicable in the current scenario. By referencing the specific eventualities mentioned in the rule, the petitioner argued that none of those circumstances were present in their case, thereby emphasizing that there were no legal grounds for the respondents to withhold the refund.

Interpretation of Circular No.37/2018-Customs dated 9.8.2018 and 9.10.2018:
The petitioner analyzed Circular No.37/2018-Customs dated 9.8.2018 and highlighted that it indicated exporters relinquishing their IGST/ITC claim by declaring specific drawback claim serial numbers. Furthermore, the petitioner differentiated this circular from Circular No.37/2018-Customs dated 9.10.2018, emphasizing its inapplicability to the facts of the present case. The petitioner's stance was that the return of the differential drawback amount had resolved any potential issues, reinforcing the argument for granting the refund.

This comprehensive analysis of the judgment delves into the various issues raised by the petitioner's advocate, focusing on the legal provisions, rules, and circulars relevant to the case. The arguments presented by the advocate were aimed at establishing the petitioner's entitlement to the refund and addressing any potential grounds for withholding it as per the statutory framework and circular interpretations provided.

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