2020 (7) TMI 137 - HC - GST

Refund of Input Tax Credit - exports of goods outside India - Zero rated supplies - Section 54 of the Central Goods and Services Tax Act, 2017 - denial of refund on the ground that petitioner had exported goods through foreign Post Offices, while Notification dated 04th June, 2018 read with Circular No.14/2018-Customs dated 04th June, 2018 has notified Exports by Post Regulations, 2018 w.e.f. 21st June, 2018 which provides for an entry to be presented to proper officer at the foreign Post Office of clearance - HELD THAT - Issue Notice. List on 9th September, 2020.

Summary

Issues:
Challenge to denial of refund for exports under IGST Act and CGST Act.

Analysis:
The petitioner filed a writ petition challenging the denial of refund by the respondents despite making exports of goods outside India, which are considered zero-rated supplies under Section 16 of the IGST Act and entitle the petitioner to a refund of input tax credit under Section 54 of the CGST Act. The denial was based on the ground that the goods were exported through foreign Post Offices. The petitioner argued that the new procedure for filing the postal bill of export does not affect the substantive right to claim a refund for zero-rated supplies under the statute. The Court issued notice to the respondents, and the senior standing counsel accepted notice on behalf of respondent nos. 1 to 3. The Commissioner of Customs, respondent no. 4, was deemed unnecessary and removed from the array of parties. The counsel for the respondents was granted permission to file a counter-affidavit within four weeks, and a rejoinder, if any, was to be filed within a further four weeks. The matter was listed for 9th September 2020, and the order was directed to be uploaded on the website and forwarded to the counsel via email.