2021 (4) TMI 1213 - HC - GST

Court orders refund of IGST amount for exported goods, emphasizing exporters' rights and statutory provisions

The Court allowed the Writ Petition, directing the respondent to refund the IGST amount of Rs. 2,54,449 paid by the petitioner for exported goods within ... Refund of IGST on export of goods - shipping bill deemed application for refund under Rule 96 of the CGST Rules, 2017 - zero-rated supplies - entitlement to refund where tax has been paid on export - interest on delayed refund - administrative circulars not to override judicial declarations of lawRefund of IGST on export of goods - shipping bill deemed application for refund under Rule 96 of the CGST Rules, 2017 - zero-rated supplies - entitlement to refund where tax has been paid on export - interest on delayed refund - administrative circulars not to override judicial declarations of law - The petitioner is entitled to refund of the IGST paid on exported zero-rated supplies and to interest for delayed refund. - HELD THAT: - The Court found that the petitioner, a merchant exporter, exported goods which are zero-rated supplies and complied with the requirements that render the shipping bills as an application for refund under Rule 96 of the CGST Rules, 2017. Applying the statutory scheme and the precedent relied upon by the petitioner, the Court held that where export has been made after payment of tax the petitioner is entitled to refund of the IGST paid. The Court also observed that administrative circulars or instructions cannot lawfully defeat the entitlement to refund as declared by superior judicial decisions. In consequence of these findings the writ petition was allowed and the respondent was directed to sanction the refund of the claimed IGST together with interest at the rate directed by the Court until actual payment. [Paras 3, 4, 5]Writ petition allowed; respondent directed to sanction refund of IGST paid on the exported zero-rated supplies with interest at 9% until actual refund, within six weeks from receipt of the order.Final Conclusion: The High Court allowed the writ petition and directed the customs authority to refund the IGST paid on the petitioner's exported zero-rated supplies, with interest at 9% until actual payment, within six weeks from receipt of the order. Issues:1. Refund of IGST paid by the petitioner for exported goods.Analysis:The Writ Petition was filed to direct the respondent to sanction the refund of IGST paid by the petitioner for exported goods. The petitioner, a merchant exporter, fulfilled the requirements under Rule 96 of the CGST Rules, 2017, by filing shipping bills and export documents. The petitioner highlighted the provisions of Section 54 of the CGST Act, 2017, and Section 16 of the IGST Act, 2017, which mandate the refund of IGST paid on exported goods. Despite exporting goods in September 2017, the petitioner had not received the IGST refund, leading to the filing of this Writ Petition.The counsel for the petitioner relied on a previous judgment by the Madras High Court, emphasizing the entitlement of exporters to IGST refunds upon fulfilling the necessary conditions, irrespective of circulars issued by authorities. The judgment referred to a Supreme Court decision stating that circulars cannot override statutory provisions. Additionally, a Division Bench of the Gujarat High Court upheld the petitioner's right to IGST refund, emphasizing the obligation of authorities to refund the amount paid by exporters. Based on these precedents, the Court directed the respondent to refund the IGST amount of Rs. 2,54,449 paid by the petitioner for the exported goods within six weeks, along with 9% interest until the actual refund date.In conclusion, the Court allowed the Writ Petition, citing the applicability of previous judgments emphasizing exporters' rights to IGST refunds as per statutory provisions. The respondent was directed to refund the IGST amount paid by the petitioner for the exported goods, in line with the legal entitlement of exporters to such refunds, within a specified timeframe and with applicable interest.