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2023 (12) TMI 726 - HC - GSTRevocation of tagging/naming the petitioner as risky exporter - requirement of verification in terms of Circular No. 131/01/2020-GST - HELD THAT - In light of the admitted fact that process of verification is not completed, the authorities to strictly adhere to the time frame stipulated in the Circular at Annexure-A. On the lapse of three weeks from today in the event, verification is not completed in terms of procedure at Annexure-A, alert and E.O. remark classifying exporter as risky for grant of refund would stand stayed, which would not come in the way of verification as per law which must be completed within a period of one month thereafter. The petition is disposed off.
Issues involved: Issuance of mandamus to revoke tagging as "risky exporter" and sanction IGST refund claimed for exported goods.
Issue 1: Tagging as "risky exporter" The petitioner sought a mandamus to direct the respondents to revoke the tagging of the petitioner as a "risky exporter." The petitioner's refund was withheld due to being classified as such. Despite alerts and procedures outlined in the Standard Operating Procedure, the verification process was not completed, causing prejudice to the petitioner's interests. The Circular emphasized the need to mitigate risks for genuine exporters without causing hardship. It specified timelines for verification and escalation procedures if delays occur. The court directed the authorities to strictly adhere to the time frame stipulated in the Circular. If verification is not completed within the specified period, the classification as a "risky exporter" for refund purposes would be stayed, allowing for verification to proceed within a month. Issue 2: Sanction of IGST refund The petitioner also sought an order to direct the respondents to sanction the IGST refund of Rs. 1,09,13,672 claimed for goods exported in May and June 2022. The delay in refund sanction was linked to the petitioner being labeled as a "risky exporter." The court's decision to ensure completion of verification within the prescribed timeline would enable the processing of the petitioner's refund claim. The judgment disposed of the petition accordingly, emphasizing the importance of completing verifications promptly to avoid prejudicing genuine exporters.
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