High Court Orders Prompt Review of IGST Refund Claim

The High Court ordered the competent authority to review the petitioner's refund claim for IGST on zero-rated supplies and make a decision promptly, preferably within 3 to 4 weeks. The Court directed the authority to consider the documents submitted by the petitioner and provide a reasonable opportunity for the petitioner to be heard. The writ petition was disposed of with these instructions.

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Issues:
Claim for refund of IGST on zero-rated supplies

Analysis:
The petitioner, a manufacturer of Polypropylene Matting, exports goods and pays GST in accordance with the law. The exports are considered 'Zero Rated Supply' under Section 16 of the IGST Act. The petitioner is entitled to claim a refund under Section 16(3)(b) by supplying goods on payment of integrated tax and claiming a refund of such tax paid. The petitioner submitted various documents like shipping bills, Commercial Invoice, Export Invoice, Export General Manifest, and bill of lading to support the refund claim. Despite repeated follow-ups, the IGST refund has not been processed by the respondents. The petitioner sought a writ of mandamus directing the 3rd respondent to refund the IGST amount of Rs. 4,27,500 paid for exported goods within a fixed time limit.

The High Court heard arguments from the petitioner's counsel and the Assistant Solicitor General representing the Union of India, along with the Central Government Counsel. After considering the facts and circumstances of the case, the Court ordered the 3rd respondent or the competent authority to review the petitioner's refund claim as per the documents submitted. The authority was directed to make a decision on the refund claim after giving the petitioner a reasonable opportunity to be heard. The Court instructed the respondents to expedite the process and make a decision preferably within 3 to 4 weeks from the date of the court order. The writ petition was finally disposed of with these directions and observations.

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