9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (6) TMI 1163 - HC - GSTValuation of goods for working out the refund of Integrated Goods and Services Tax (IGST) to be sanctioned - HELD THAT - There is nothing in the rules to indicate nor the rules mention anywhere that it is only the net realisation value which has to be considered. The rule states the value of the goods declared in the GST Invoice. The value in the GST Invoice as declared by petitioner is FOB value of USD 224846.75 - the value of the goods that has to be considered for refund would be USD 224846.75 and if there is a discrepancy in the value in the corresponding shipping bill, the lower of the two values should be sanctioned as refund. The impugned order dated 25th August 2020 is set aside - matter is remanded to respondent no. 1 to process the refund application in accordance with law. Petition disposed off by way of remand.
Issues:
1. Determination of the value of goods for refund of Integrated Goods and Services Tax (IGST). Analysis: The petitioner, a jewellery processor and manufacturer, regularly imports gold and exports gold jewellery, claiming refunds on Input Tax Credit (ITC) for IGST paid on gold imports. A refund claim for Rs. 21,00,000/- was filed for the period June 2018 to September 2018. However, the Adjudicating Authority granted only Rs. 88,295/- based on instructions from Board Circular No. 37/11/2018-GST. The Circular directs to consider the lower value between the export invoice and the value in the shipping bill for determining the refund. The petitioner contested that the FOB value declared in the GST Invoice should be considered for the refund, not the net realization value. The main issue was the determination of the FOB value declared in the GST Invoice. The respondent argued that the FOB value should be USD 6479.39, considering the gold supplied free of cost. However, the Court disagreed, stating that the FOB value declared in the Invoice was USD 224846.75, and any discrepancy in the shipping bill value should result in the lower of the two values being sanctioned as a refund. The Court provided an illustrative example to clarify the interpretation of the invoice value, emphasizing that the total value of the goods sold should be considered, not just the net realization amount. Consequently, the Court quashed the impugned order and remanded the matter to the Adjudicating Authority to process the refund application based on the FOB value declared in the GST Invoice. The judgment was in favor of the petitioner, emphasizing the importance of correctly interpreting the invoice value for refund purposes. The petition was disposed of with no order as to costs.
|
