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2024 (2) TMI 236 - HC - GSTRefund of IGST - Claiming benefit of higher duty drawback also - Goods exported by the petitioner which are stated to be zero rated supply - Period 31 July 2017 to 16 August 2017 - HELD THAT - As now the petitioner has fairly stated that the petitioner is ready and willing for adjustment of the higher duty drawback as availed by the petitioner and the balance amount being IGST minus higher duty drawback be refunded to the petitioner, it would be appropriate that the respondents consider such request of the petitioner as also fairly stated that the IGST amounts can be refunded to the petitioner after adjustment of the higher duty drawback as availed by the petitioner. Petition disposed off.
Issues Involved:
1. Refund of Integrated Goods and Service Tax (IGST) on zero-rated supplies. 2. Amendment in shipping bills and rejection of the same. 3. Entitlement to interest on delayed refund. 4. Adjustment of higher duty drawback against IGST refund. Summary: 1. Refund of IGST on Zero-Rated Supplies: The petitioner, engaged in the export of brass parts and components, sought a writ u/s Article 226 of the Constitution of India for the refund of IGST paid on zero-rated supplies as per four shipping bills dated between 31 July 2017 and 16 August 2017. The petitioner argued that the Central Board of Excise and Customs (CBIC) circulars issued on 23 February 2018 and 29 May 2018 provided an alternative mechanism to rectify initial errors. 2. Amendment in Shipping Bills: The petitioner requested amendments in the shipping bills through letters dated 27 August 2018 and 11 July 2019, which were rejected on 14 September 2019. Subsequently, the respondent authority informed the petitioner via email on 10 February 2020 that the refund could not be sanctioned due to the availing of a higher duty drawback. 3. Entitlement to Interest on Delayed Refund: The petitioner sought interest at 9% on the refund amount from the date of the shipping bill until the refund is paid, claiming the refund was arbitrarily and illegally withheld by the respondents. 4. Adjustment of Higher Duty Drawback Against IGST Refund: The respondents contended that the petitioner was not entitled to the IGST refund as they had availed a higher rate of duty drawback, which automatically rejected the IGST amount paid. The petitioner responded by stating their willingness for the adjustment of the higher duty drawback against the IGST refund. Judgment: The court referenced the decision in Sunlight Cable Industries Vs. The Commissioner of Customs and other relevant cases, noting that the petitioner is entitled to the IGST refund on zero-rated supplies. The court highlighted that the petitioner was willing for the adjustment of the higher duty drawback, and thus, the respondents should consider this request. Order: I. The court accepted the petitioner's statement for the adjustment of the higher duty drawback as a condition for the IGST refund. II. The respondents were directed to adjust the higher duty drawback and refund the IGST amount accordingly. III. The entire process was to be completed within six weeks from the date of the order. IV. All other contentions regarding the refund amount were kept open. V. The designated authority was instructed to consider appropriate interest on both the higher duty drawback and the IGST refund amounts. The petition was disposed of with no costs.
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