Delhi High Court directs GST Authority to sanction Refund of IGST paid on zero-rated Supplies, along with 7% Interest [Read Order]

Delhi HC - GST Authority - refund of the IGST - zero-rated supplies - Taxscan

The Delhi High Court directed the  GST Authority to sanction the refund of the IGST paid in regard to zero-rated supplies, along with 7% interest.

A detailed order was passed by the Court wherein the Court agreed with the submission of the petitioners, subject to respondent authority verifying as to whether duty drawback/CENVAT credit had been availed of by the petitioners, with regard to Central Excise and Service Tax component.

The matter was thereafter taken up by the Court when Mr. Harpreet Singh, counsel appearing for respondent authority, informed the Court that he had received an email from the concerned officer, which was indicative of the fact that the duty drawback qua the Central Excise had not been availed by the petitioners. Thus, the only other aspect which respondent authority was required to examine, was, as to whether the petitioners had availed the duty drawback qua the Service Tax component.

Mr. Singh has stated that none of the petitioners have availed of CENVAT credit qua central excise; a position which was made known to us even on 15.03.2021. Furthermore, Mr. Singh says, none of the petitioners have availed of CENVAT credit qua service tax component save and except, M/s Inter Trade, Kolkata. The quantum of CENVAT credit qua service tax component availed by M/s Inter Trade, Kolkata, according to the affiant, is Rs. 1856/- pertaining to the financial year 2015-2016.

The only other question left for consideration was as to whether the petitioners should be paid any interest for delayed remittance of refund on account of IGST.

The division bench of Justices Rajiv Shakdher and Talwant Singh held that the respondents are directed to immediately sanction the refund of the IGST paid in regard to the goods exported, i.e. “zero-rated supplies”, with 7% simple interest from the date of shipping bills till the date of actual refund.

Subscribe Taxscan AdFree to view the Judgment

Support our journalism by subscribing to Taxscan AdFree. We welcome your comments at info@taxscan.in

Related Stories