2019 (6) TMI 1356 - HC - Customs

Permission to withdrawal of petition - Refund of IGST paid - duty drawback - inadvertent error - HELD THAT - The learned counsel appearing in support of the petitioner seeks to withdraw the Petition with a liberty to approach the respondent under the proviso to section 149 of the Customs Act, 1962. We, however, make it clear that the issue of application of proviso to section 149 to the facts of this case would be considered in accordance with the law by the authority to whom the application for rectification is made. Petition is disposed of as withdrawn.

Summary

Issues:
1. Seeking direction for refund of IGST paid under the Integrated Goods & Services Tax Act by claiming drawback on exported goods.
2. Necessity to amend/rectify 15 shipping bills for sustaining a claim for drawback.
3. Withdrawal of the petition with liberty to approach under the proviso to section 149 of the Customs Act, 1962.
4. Granting liberty to make an application for rectification of shipping bills within a specified timeframe.
5. Disposal of the petition as withdrawn with the granted liberty.

Analysis:
1. The petitioner filed a petition under Article 226 of the Constitution seeking a direction for a refund of IGST paid in compliance with the Integrated Goods & Services Tax Act. The refund was claimed by asserting drawback on goods exported through 15 shipping bills.

2. During the arguments, it was acknowledged by both parties that rectification of the 15 shipping bills was essential to sustain a claim for drawback. The petitioner attributed the mistakes in the shipping bills to inadvertent errors, emphasizing the need for rectification.

3. The learned counsel representing the petitioner expressed the intention to withdraw the petition, with a request to approach the respondent under the proviso to section 149 of the Customs Act, 1962. The court allowed the withdrawal, highlighting that the application of the proviso to section 149 would be assessed by the relevant authority.

4. Liberty was granted to the petitioner to submit an application for rectification of the 15 shipping bills within seven days under section 149 of the Customs Act, 1962. It was emphasized that the respondents should promptly review any such applications.

5. Ultimately, the petition was disposed of as withdrawn, with the provided liberty for the petitioner to pursue rectification of the shipping bills. The court ensured that the issue of rectification would be considered by the authorities in line with the applicable laws.