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2023 (12) TMI 964 - AT - CustomsRecovery of amount refunded erroneously - export of goods - IGST paid at the time of export and the goods have been exported on payment of Customs duty - applicability of CBEC Circular F.No.390/Misc./30/2023-JC dated 02.11.2023 - HELD THAT - It is not disputed by both sides that it is a case of refund of IGST and the appeal is filed under the Customs Act,1962 for erroneously refund of duty paid to the respondent. Admittedly, there is no refund of Customs duty involved in this case, it is a refund of IGST, which is not governed by the Customs Act, 1962. Therefore, this appeal is not maintainable under the Customs Act, 1962. The Revenue has filed this appeal in terms of Section 54 (3) of the CGST Act, 2017. Section 54 (3) of the CGST Act, 2017 is not applicable to the facts and circumstances of the case as it is a case of refund of input tax credit. Further, there is no other case is pending with regard to the respondent in litigation, therefore, on litigation seeking also, the respondent succeeds. There are no merit in the appeal filed by the Revenue, accordingly, the same is dismissed.
Issues involved:
The appeal for early hearing, refund of IGST paid by the respondent, applicability of Section 54(3) of the CGST Act, 2017, invocation of Section 28 of the Customs Act, 1962, maintainability of the appeal under the Customs Act, 1962. Refund of IGST paid by the respondent: The respondent, engaged in the export of iron ore, paid IGST on the goods to be exported and export duty at the time of export. Initially, the Revenue sanctioned the refund claim but later initiated proceedings under Section 28 of the Customs Act, 1962 to recover the refunded amount. The appeal was filed by the Revenue against this. Applicability of Section 54(3) of the CGST Act, 2017: The Revenue contended that as per Section 54(3) of the CGST Act, 2017, no refund of unutilized input tax credit is allowed if goods exported outside India are subjected to export duty. The Revenue argued that since the goods exported by the respondent were subject to export duty, they were not entitled to claim the refund of unutilized tax credit. Invocation of Section 28 of the Customs Act, 1962: The Revenue invoked Section 28 of the Customs Act, 1962 to recover the amount erroneously refunded to the respondent. The respondent's counsel argued that this provision was not applicable as it was a case of refund of IGST, not unutilized input tax credit. Maintainability of the appeal under the Customs Act, 1962: After considering submissions from both sides, it was found that the appeal was not maintainable under the Customs Act, 1962. The case involved a refund of IGST, not Customs duty, and therefore fell outside the purview of the Customs Act, 1962. Additionally, Section 54(3) of the CGST Act, 2017 was deemed inapplicable to the circumstances of the case, as it pertained to refund of input tax credit. Decision: The appeal filed by the Revenue was dismissed as it was found to lack merit. The Tribunal concluded that the case was not about refund of Customs duty but of IGST, which was not governed by the Customs Act, 1962. Moreover, Section 54(3) of the CGST Act, 2017 did not apply to the situation at hand.
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