2022 (9) TMI 116 - HC - GST

Refund of IGST - zero rated supplies - shipping bills could be treated as refund applications or not - Section 54 of the Central Goods Service Tax (CGST) Act, 2017 read with Rule 96 of the CGST Rules 2017, as also Section 16 of the IGST Act of 2017 - HELD THAT - In the prayer clause of the writ petition, the amount claimed towards IGST is Rs. 99,11,273/-, and likewise, towards duty drawback, the amount claimed is Rs. 6,96,027/-. Issue Notice.

Summary

Issues:
1. Whether the Integrated Goods and Services Tax (IGST) against 11 shipping bills has been blocked.
2. Whether the petitioner is entitled to a refund of IGST for zero-rated supplies.
3. Whether the shipping bills can be treated as refund applications under relevant provisions.
4. Whether the IGST refund should be ordered with interest.
5. Whether the petitioner is entitled to amounts towards duty drawback.

Analysis:
1. The petitioner's counsel argued that the IGST against 11 shipping bills has been blocked and should be refunded as they pertain to zero-rated supplies. The counsel relied on provisions of Section 54 of the Central Goods & Service Tax (CGST) Act, 2017, Rule 96 of the CGST Rules 2017, and Section 16 of the IGST Act of 2017 to support the claim that the shipping bills could be considered as refund applications. The petitioner sought an IGST refund along with interest at a rate of 9% per annum and additional amounts towards duty drawback.

2. The court issued notice to the respondents, with Mr. Aditya Singla accepting notice on behalf of respondent nos. 2 to 7, and Mr. Rakesh Kumar Dudeja accepting notice on behalf of respondent no. 1/UOI. Counter-affidavit(s) were directed to be filed within the next four weeks, with an opportunity for rejoinder(s) before the next hearing date.

3. During the proceedings, the petitioner's counsel highlighted an inaccuracy in the description of respondent no. 4 in the memo of parties and sought leave to amend the same. The court granted permission for the amendment, directing the filing of the amended memo of parties within the next ten days.

4. The matter was listed for the next hearing on 25.05.2022 to further address the issues raised regarding the blocked IGST, refund entitlement, interest, and duty drawback amounts claimed by the petitioner. The court's directions aimed to ensure a fair and comprehensive consideration of the petitioner's claims and the respondents' responses in accordance with the relevant legal provisions.