Issue of “Proper Authority” resolves between Customs and GST Dept: Customs sanctions Refund following Direction of Bombay HC [Read Order]

Proper Authority - Customs - GST Dept - GST - Refund - Bombay High Court - Taxscan

In a recent case, the Bombay High Court (HC) presided by Justices Abhay Ahuja and Nitin Jamdar directed both the Goods and Services Tax ( GST ) and Customs department to coordinate and decide about the correct authority to decide the Integrated Goods and Services Tax ( IGST ) refund.

The “proper authority” problem was resolved in accordance with the Bombay HC’s instructions. Together, the two departments determined who would be the appropriate authority  to decide the petitioner’s claim. The Customs department  took the initiative to sanction the refund.

The petitioner, M/s Bora Mobility conducts business, exports. It made an application for a GST refund by presenting the shipping bill. Customs did not handle the refund claim. Further contacted the GST officials. No action was taken on the claim.

The customs authorities asserted that the GST authority is the appropriate officer for handling refund claims, however the GST authorities contend that it is the customs officers. This was observed by the court.

The division bench directed the respondents (Customs and GST department) to coordinate with each other, decide about forum and inform the Court on the next date through a joint note as to who is the correct authority to decide the Petitioner’s claim. Otherwise, the court will take a decision on that.

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