2020 (12) TMI 584 - HC - GST

Refund of IGST alongwith the interest - export of 740 cartons of garments to West Midlands, United Kingdom - According to the petitioner, there still remains a balance of ₹ 1,11,254/- payable by the respondents towards refund of IGST - Board's Circular No.40/2018-Customs dated 24.10.2018 - HELD THAT - The learned counsel for the petitioner drew the attention of this Court to Paragraph No.5 of the counter-affidavit filed by the first respondent, wherein they have admitted that the non-credit of the balance amount of ₹ 1,11,254/- happened as a result of technical fault in the computer system maintained by the respondents. Referring to the same, the learned counsel for the petitioner would submit that the respondents have admitted their liability to refund of IGST amount to the petitioner, but have expressed their difficulty in refunding the amount, only due to the fact that the petitioner has not sought for refund by filing necessary Form in accordance with the Board's Circular No.40/2018-Customs, dated 24.10.2018. The learned counsel for the petitioner on instructions would submit that the petitioner is prepared to submit the Form in accordance with the Board's Circular No.40/2018-Customs dated 24.10.2018 to seek refund of a sum of ₹ 1,11,254/- payable to the petitioner towards IGST refund under the shipping bill No.773482 on 21.09.2018. For this, the learned standing counsel for the respondents has also not raised any serious objection. This Court directs the petitioner to submit a Revised Refund Request Form as per the Board's Circular No. 40/2018-Customs dated 24.10.2018, within a period of one week from the date of receipt of a copy of this order, seeking for refund of ₹ 1,11,254/- - Petition disposed off.

Summary

Issues:
1. Refund of IGST amount claimed by the petitioner.
2. Alleged technical fault in the computer system causing non-credit of the balance amount.
3. Requirement of submitting a specified Form for seeking refund as per Circular No.40/2018-Customs.

Analysis:
1. The petitioner filed a writ petition seeking a refund of ?1,11,254 claimed through a shipping bill for exporting garments to the UK. The petitioner paid IGST of ?5,81,535.30 at a 5% rate on the consignment value of USD 1,61,649.98. While a portion of the IGST refund was credited to the petitioner's account, a balance of ?1,11,254 remained unpaid by the respondents. The petitioner followed the prescribed procedures by approaching the authorities for the refund.

2. The first respondent contended that the non-credit of the balance amount was due to a technical fault in the computer system. They directed the petitioner to follow the procedure outlined in Circular No.40/2018-Customs, which required the submission of a specified Form for seeking a refund. The respondent maintained that the officers had fulfilled their duties by generating the scroll promptly, and any issues were a result of the technical fault.

3. During the hearing, the petitioner's counsel highlighted the admission by the first respondent regarding the technical fault leading to the non-credit of the balance amount. The petitioner expressed readiness to submit the required Form as per Circular No.40/2018-Customs to claim the refund. The court directed the petitioner to submit a Revised Refund Request Form within a week, and upon receipt, the first respondent was instructed to process the refund within six weeks.

In conclusion, the court disposed of the writ petition, emphasizing the necessity for the petitioner to adhere to the prescribed procedure for seeking a refund, as outlined in the relevant circular.