Challenge of Export Refund Denial under IGST & CGST Acts; Customs Commissioner Removed; Hearing Set

The petitioner challenged the denial of refund for exports under the IGST Act and CGST Act, arguing that goods exported through foreign Post Offices still qualify for zero-rated supplies. The Court issued notice to the respondents and granted them time to file a counter-affidavit. The Commissioner of Customs was removed from the case. The matter was scheduled for a hearing on 9th September 2020, with orders to be uploaded on the website and sent to the counsel via email.

---

---

Issues:
Challenge to denial of refund for exports under IGST Act and CGST Act.

Analysis:
The petitioner filed a writ petition challenging the denial of refund by the respondents despite making exports of goods outside India, which are considered zero-rated supplies under Section 16 of the IGST Act and entitle the petitioner to a refund of input tax credit under Section 54 of the CGST Act. The denial was based on the ground that the goods were exported through foreign Post Offices. The petitioner argued that the new procedure for filing the postal bill of export does not affect the substantive right to claim a refund for zero-rated supplies under the statute. The Court issued notice to the respondents, and the senior standing counsel accepted notice on behalf of respondent nos. 1 to 3. The Commissioner of Customs, respondent no. 4, was deemed unnecessary and removed from the array of parties. The counsel for the respondents was granted permission to file a counter-affidavit within four weeks, and a rejoinder, if any, was to be filed within a further four weeks. The matter was listed for 9th September 2020, and the order was directed to be uploaded on the website and forwarded to the counsel via email.

---