Madras HC allows Writ Petition seeking Re-examination of Export Refund under GST Circular, Remands for Reconsideration [Read Order]

The Madras High Court allowed the writ petition seeking the re-examination of the export refund under the Goods and Services Tax ( GST ) circular. The matter was remanded for reconsideration.

The petitioner Tvl.Mallow International has lodged a writ petition seeking a Certiorarified Mandamus to scrutinise records concerning the contested refund sanction/rejection o in Form GST RFD-06 dated 26.09.2020, with the aim to annul it and instruct the second respondent to fully honour the refund claim as presented.

The petitioner's counsel contended that for subsequent periods, the respondents have granted refunds for exports by the petitioner, referencing a clarification issued by the Principal Commissioner ( GST ) on 17.07.2023 in Circular No.197/09/2023-GST. Of particular interest is paragraph 3 of the clarification, which addresses the calculation of "adjusted total turnover" under sub-rule (4) of Rule 89 of the Central Goods and Services Tax Rules ( CGST ) following an explanation insertion via Notification No.14/2022-CT, dated 05.07.2022.

The government advocate for the respondents dismissed the petitioner's assertions, highlighting Rule 89(4) of the CGST Rules. He submitted that as per Notification No.14/2022, Central Tax, an explanation has been inserted in the Central Goods and Services Tax Rules, 2017 and therefore, there is no merit in the challenge.

Despite the robust defence, a Single bench of Justice C. Saravanan of Madras High Court, convinced by the petitioner's plea and the potential impact of the aforementioned circular, opted to set aside the impugned order. The case is remitted to the Assistant Commissioner ( ST ), for fresh consideration within an eight-week period, considering the submissions made by the petitioner's counsel and the content of the circular.

As a result, the court concedes to the petitioner's request, indicating a readiness to reevaluate the refund claim in consideration of evolving legal interpretations.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates