2025 (3) TMI 248 - HC - GST

Refund of IGST - zero rated supply - HELD THAT - The issue raised in the writ petition is no longer res integra . The Hon ble Division Bench of Gujarat High Court in the decision reported in M/s.Amit Cotton Industries Through Partner Veljibhai Virjibhai Ranipa Vs Principal Commissioner of Customs 2019 (7) TMI 472 - GUJARAT HIGH COURT had categorically held that the aforesaid circular cannot prevail over Rule 96. The Hon ble Division Bench observed that the circular will not save the situation for the Department. The impugned order dated 24.11.2020 is set aside and the respondent is directed to refund a sum of Rs. 25, 84, 277/- together with applicable interest to the petitioner within a period of eight weeks from the date of receipt of a copy of this order - Petition allowed.

Summary

The Madras High Court, in a case involving an exporter seeking a refund of IGST paid on zero-rated supplies, set aside the rejection of the refund request citing a circular, following the precedent set by the Gujarat High Court that the circular cannot override the relevant rule. The court directed the respondent to refund the IGST amount with interest within eight weeks. The writ petition was allowed with no costs.