Respondent given one week to seek Apex Court review on IGST refund. Failure leads to merit-based proceedings.

The court granted the respondent one week to approach the Apex Court regarding the IGST refund claim non-compliance. If the respondent failed to do so within the specified time frame, the matter would proceed on its merits.

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Issues:
Contempt of court for non-compliance of directions regarding IGST refund claim.

Analysis:
The applicant filed a contempt application alleging that the respondent had unlawfully withheld the IGST refund claim despite specific directions issued by the court in a previous case. The applicant sought action against the respondent for non-compliance with court orders regarding the refund claim.

In response to the notice, the Assistant Commissioner of Customs filed an affidavit emphasizing that the refund sanctioning process is system-driven and based on the exporter's declaration at the time of export. The respondent highlighted that exporters who have already availed higher drawback amounts have had their IGST refunds withheld by the system. The department expressed its intention to challenge the Division Bench's judgment on the issue in the Apex Court.

During the hearing, the applicant's advocate argued that the law permits requesting IGST refunds when opting for higher due drawback refunds. He pointed out that a circular from the Ministry of Finance also supports this position. The advocate criticized the department for not taking timely action despite the Division Bench's ruling in favor of the applicant. He raised concerns about the lack of a petition filed in the Apex Court till date.

Another advocate representing the department acknowledged some delays but argued that the court should not deny the department's right to challenge the Division Bench's order. He explained that the system does not currently allow switching to claim IGST refunds after availing higher due drawback refunds. He requested an adjournment to allow the department more time to approach the Apex Court.

In light of the arguments presented, the court granted the respondent one week to approach the Apex Court. The court noted that a year had passed since the judgment in question was issued and emphasized that if the respondent failed to move the Apex Court within the given time frame, the matter would proceed on its merits. The next hearing was scheduled for a later date.

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