Court Orders Refund of Rs. 4,80,355 in IGST for Exported Goods; Circular Cannot Override Statutory Provisions.

The HC granted the petitioner's Writ of Mandamus, directing the respondents to refund Rs. 4,80,355 in IGST for exported goods. The court determined that the circular cited by the respondents could not override statutory provisions that allow IGST refunds for exports made post-tax payment. The petitioner's claim was upheld, with no costs awarded.

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Issues:
Claim for refund of IGST paid by the petitioner for exported goods under zero-rated supplies. Interpretation of circular affecting refund entitlement.

Analysis:
The petitioner sought a Writ of Mandamus for the refund of Rs. 4,80,355 IGST paid for exported cotton. The petitioner exported after paying the tax, making them eligible for the refund of input tax credit. The respondents argued that the petitioner, by mistakenly claiming higher duty drawback and repaying it, had relinquished the right to claim IGST refund. They cited a circular stating that consciously requesting a duty drawback refund forfeits the IGST claim. The court noted that the statute allows for IGST refund on exports made after tax payment. The court referenced a Supreme Court case emphasizing that circulars cannot override statutory provisions. The court held that the circular in question did not apply to the IGST refund claim and directed the respondents to refund the IGST amount within six weeks. The court highlighted a Gujarat High Court decision supporting the petitioner's claim for IGST refund despite the circular's provisions. The Writ Petition was allowed, with no costs incurred.

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