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2024 (6) TMI 1163 - HC - GSTIssues: 1. Determination of value of goods for refund of Integrated Goods and Services Tax (IGST). Analysis: The petitioner, a jewellery processor and manufacturer, imported gold and exported gold jewellery, claiming refund of Input Tax Credit (ITC) on export of goods and services. A refund claim application was filed for the period June 2018 to September 2018, seeking Rs. 21,00,000. The Adjudicating Authority granted only Rs. 88,295 based on instructions directing to consider the lower value between the export invoice and value in shipping bills for determining the refund. The dispute centered on the FOB value declared in the GST Invoice. The petitioner argued that the FOB value declared in the GST Invoice was USD 224846.75, while the respondent contended it should be USD 6479.39 due to the mention of gold supplied free of cost in the invoice. The Court disagreed with the respondent, stating that the invoice clearly indicated the FOB value as USD 224846.75. The Court emphasized that discrepancies in values should be resolved by considering the lower of the two values for refund purposes. The Court provided an illustrative example to clarify the issue, highlighting that the value of goods sold should not be confused with the net amount payable after adjustments. It emphasized that the invoice value represents the total value of goods sold, including any advances or adjustments made. Therefore, the Court found the respondent's calculation based on the net realization value to be incorrect and ordered the refund to be processed based on the FOB value declared in the GST Invoice. In conclusion, the Court quashed the impugned order and remanded the matter to the Adjudicating Authority to process the refund application in accordance with the correct valuation principles. The petition was disposed of with no order as to costs.
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