2023 (6) TMI 580 - HC - GST

Refund of IGST paid on export of goods - Restriction on receipt of certain supplies under Rule 19(10) of CGST - Advance Authorization scheme / Deemed Export etc. - Constitutional Validity of sub rule (10) of Rule 96 of the CGST Rules, 2017 - ultra vires Section 16 of the IGST Act, ultra vires Sections 54 and 164 of the CGST Act, 2017, and ultra vires Articles 14 and 19(1)(g) of the Constitution - levy of IGST on goods exported - refund of such tax paid on the goods exported under Section 16(3) of the IGST Act, 2017 - HELD THAT - It was pointed out by learned advocate Mr. Dhaval Shah that in MESSRS KOSHAMBH MULTITRED PVT. LTD. VERSUS UNION OF INDIA 2023 (3) TMI 1371 - GUJARAT HIGH COURT involving similar challenge has been entertained by this Court and ad-interim relief was also granted. In the facts and circumstances of the case and in aforesaid view, Notice to the respondents returnable on 22.06.2023. By way of ad- interim relief, it is directed that respondent authority shall not make any coercive recovery from the petitioner in respect of the refund of the integrated tax already paid, till further orders.

Summary

Issues Involved:
The issues involved in the judgment are challenging the validity of certain rules under the CGST Act, claiming entitlement to pay integrated tax on exported goods and seeking a refund, and reassessment of Bills of Entry for imports against Authorization.

Challenging the Validity of Rules under CGST Act:
The petitioners sought to challenge sub rule (10) of Rule 96 of the CGST Rules, 2017 as ultra vires Section 16 of the IGST Act, ultra vires Sections 54 and 164 of the CGST Act, 2017, and ultra vires Articles 14 and 19(1)(g) of the Constitution. They also requested a declaration that they are entitled to pay integrated tax on exported goods and claim a refund of such tax paid under Section 16(3) of the IGST Act, 2017. The petitioners further asked for directions to allow them to pay integrated tax on exported goods and receive a refund of such tax paid. The challenge to a show cause notice was incorporated into the draft amendment granted by the court.

Entitlement to Pay Integrated Tax on Exported Goods and Claim Refund:
The petitioners, through their advocate Mr. Dhaval Shah, argued for the right to pay integrated tax on goods exported and to claim a refund of such tax paid on the exported goods under Section 16(3) of the IGST Act, 2017. They requested directions for respondent Nos. 4 and 5 to reassess Bills of Entry for imports made against Authorization and to allow Input Tax Credit (ITC) of the Integrated Tax paid by the petitioners on the imported goods against Advance Authorizations involved in the case. The court noted the similar challenge entertained in another case and granted ad-interim relief by directing that no coercive recovery be made from the petitioners regarding the refund of integrated tax already paid until further orders.

Reassessment of Bills of Entry for Imports against Authorization:
The petitioners highlighted the need for respondent Nos. 4 and 5 to reassess Bills of Entry for imports made against Authorization and to allow Input Tax Credit (ITC) of the Integrated Tax paid on the imported goods. The court, considering the circumstances, issued a notice to the respondents returnable on a specific date and provided ad-interim relief by restraining the respondent authority from making any coercive recovery from the petitioners in relation to the refund of integrated tax already paid until further orders.

This summary provides a detailed breakdown of the issues involved in the judgment, outlining the arguments presented by the petitioners and the relief sought from the court.