Gujarat High Court directs Customs Commissioner to immediately address the claim of IGST Refund [Read Order]

Gujarat High Court - Custom Commissioner - IGST refund - Taxscan

The Gujarat High Court directed the Principal Customs Commissioner to immediately address the claim of IGST refund.

The writ applicant, M/s Asian Organo Industries is engaged in the manufacture of lead sulfate. The writ applicant claims that it is eligible for the IGST refund claim on the basis of the shipping bills i.e. on the export of goods. According to the writ applicant, the shipping bills filed by an exporter of the goods are deemed to be an application for refund of the integrated tax paid on the goods exported out of India, as provided in Rule 96A of the CGST Rules, 2017.

The grievance of the writ applicant is that the respondent authority has declined to the refund of the IGST amount paid on the shipping bills.

Ms. Hetvi Sancheti, the counsel appearing for the writ applicant urged that upon inquiry, it has come to know that the refund has been declined for the reason that the writ applicant had availed drawback at the rate of 1.10%. It is the case of the writ applicant that it has claimed a lower rate of drawback in accordance with the Notification No.131/2016 dated 31st October 2016. It was a mistake on the part of the writ applicant to declare in the shipping bills that it had availed a higher drawback of selecting A instead of B. According to the writ applicant, it was an inadvertent error committed by it.

The division bench of Justice J.B.Pardiwala and Justice Ilesh J.Vora noted that dispose of all the writ applications with a direction to the respondent authority to immediately look into the matters and pass an appropriate order in accordance with law as regards the claim of the IGST refund keeping in mind the ratio of the decisions of this Court rendered in the case of M/s. Amit Cotton Industries as well as Awadkrupa Plastomech within a period of six weeks

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