2022 (4) TMI 409 - HC - GST

Refund of IGST paid - goods exported in connection with the shipping bills - Zero Rated Supplies - HELD THAT - The issue is no longer res integra in view of two pronouncements of this High Court (i) in the case of M/S AMIT COTTON INDUSTRIES THROUGH PARTNER, VELJIBHAI VIRJIBHAI RANIPA VERSUS PRINCIPAL COMMISSIONER OF CUSTOMS 2019 (7) TMI 472 - GUJARAT HIGH COURT and (ii) AWADKRUPA PLASTOMECH PVT. LTD. VERSUS UNION OF INDIA 2020 (12) TMI 1116 - GUJARAT HIGH COURT . Awadkrupa Plastomech was challenged by the Union of India before the Supreme Court. Leave was granted, and ultimately, the appeal of the Union came to be dismissed. The order passed by the Supreme Court in the UNION OF INDIA AND ORS. VERSUS AWADKRUPA PLASTOMECH PVT. LTD. 2021 (8) TMI 349 - SC ORDER , it was held that There is a clear finding of fact which has been recorded by the Division Bench of the High Court of Gujarat in its order dated 15 December 2020 that the respondent had claimed an IGST export refund only to the extent of the customs component. We see no error in the finding of the High Court. The respondents are directed to sanction the respective refunds of the IGST paid in respect of the goods exported i.e. Zero Rated Supplies with 6% simple interest from the date of the shipping bills till the date of actual refund - application allowed.

Summary

Issues:
Sanction of IGST refund for goods exported as 'Zero Rated Supplies'

Analysis:
The High Court of Gujarat heard multiple writ applications with similar issues raised, which were disposed of together. The lead matter was Special Civil Application NO.6752 of 2020. The writ applicant sought relief under Article 226 of the Constitution of India, requesting the court to direct the respondent authorities to sanction the refund of IGST paid for goods exported as 'Zero Rated Supplies.' The applicant also requested interest on the refund amount and interim relief. Mr. D. K. Trivedi represented the petitioner, while Mr. Utkarsh R Sharma represented the respondents.

The main issue in the writ application was the sanction of IGST refund for goods exported as 'Zero Rated Supplies.' The court noted that this issue had been previously addressed in two judgments of the High Court: Amit Cotton Industries vs. Principal Commissioner of Customs and Awadkrupa Plastomech Pvt. Ltd vs. Union of India. The latter case was challenged by the Union of India in the Supreme Court, where the appeal was ultimately dismissed, affirming the High Court's finding regarding the IGST export refund claim.

Based on the Supreme Court's order and previous judgments, the High Court allowed all the writ applications and directed the respondents to sanction the IGST refunds for goods exported as 'Zero Rated Supplies.' The refunds were to be accompanied by 6% simple interest from the date of the shipping bills until the actual refund date. Additionally, if any differential duty remained unpaid in any of the writ applications, it was required to be settled promptly. Consequently, all the writ applications were disposed of accordingly.