2022 (6) TMI 849 - HC - GST

Taxpayers Win IGST Refund After Notification No.10/2017-IGST (Rate) Declared Ultra Vires the IGST Act, 2017

The HC allowed an application seeking refund of IGST paid under Entry No.10 of Notification No.10/2017-IGST (Rate), which had been declared ultra vires ... Refund of tax paid - ultra vires - statutory interest on refunds - declaration of invalidity of subordinate legislation - direction to refundRefund of tax paid - ultra vires - statutory interest on refunds - direction to refund - Respondents to refund IGST paid by the applicants pursuant to Entry No.10 of Notification No.10/2017-IGST (Rate) dated 28.6.2017, together with statutory rate of interest, upon submission of necessary documents. - HELD THAT: - The Division Bench of this Court had earlier declared Entry No.10 of Notification No.10/2017-IGST (Rate) dated 28.6.2017 as ultra vires the Integrated Goods and Services Tax Act, 2017. The decision was thereafter upheld by the Hon'ble Supreme Court by dismissal of Civil Appeal No.1390 of 2022 and allied appeals. In the light of those concluded findings of invalidity, the applicants' claim for refund of IGST paid pursuant to the invalid Entry is sustainable. The Court accordingly allowed the present application and directed the respondents to grant the refund along with the statutory rate of interest, subject to the applicants furnishing the necessary documents. Compliance was ordered within a period of four weeks from such submission.Application allowed; respondents directed to refund the IGST paid pursuant to Entry No.10 of Notification No.10/2017-IGST (Rate) dated 28.6.2017 with statutory interest within four weeks from submission of necessary documents.Final Conclusion: The writ application is allowed; respondents are directed to refund the IGST paid under the impugned entry (declared ultra vires) with statutory interest upon production of requisite documents within four weeks. Issues: Refund of IGST paid under Notification No.10/2017-IGST (Rate) dated 28.6.2017 challenged as ultra vires - Direction for refund and interest.Refund of IGST:The applicants sought a refund of the IGST amount paid under Entry No.10 of Notification No.10/2017-IGST (Rate) dated 28.6.2017, claiming it to be ultra vires the Integrated Goods and Services Tax Act, 2017. The Division Bench of the High Court had previously declared Entry No.10 as ultra vires. The applicants relied on the dismissal of Civil Appeal No.1390 of 2022 by the Hon'ble Apex Court to support their claim for a refund.Court's Decision:The High Court, after considering the Apex Court's decision upholding the Division Bench's judgment on similar writ petitions, allowed the present application. The Court directed the respondents to refund the IGST amount already paid by the applicants under Entry No.10 of Notification No.10/2017-IGST (Rate) dated 28.6.2017. The refund was to be accompanied by the statutory rate of interest within four weeks from the submission of necessary documents by the applicants. The Court made the rule absolute in favor of the applicants, granting the requested relief.