2024 (6) TMI 887 - HC - GST

IGST Refund Dispute: Advance Authorization Scheme Challenge Halts Coercive Actions Under Rule 96(10)

M/s Reliance Chemotax Industries Ltd. Versus Union Of India and Others

The HC addressed a dispute involving an IGST refund claim under the Advance Authorization Scheme. The court restrained respondents from taking coercive ... Wrong Claim of IGST Refund on the Exports made under Advance Authorization (AA) Scheme - illegtimate refund scheme - HELD THAT:- The matter requires consideration. List the matter on 22.07.2024. Issues involved:The issues involved in the judgment are the wrongful claim of IGST refund on exports made under Advance Authorization (AA) Scheme and the challenge to the vires of Rule 96 sub-Rule 10 of CGST Rules, 2017.Wrong Claim of IGST Refund:The petitioner submitted that the respondents are attempting to coercively recover part of the amount under the pretext of an illegitimate refund scheme based on a letter dated 14.03.2023 regarding the 'Wrong Claim of IGST Refund on the Exports made under Advance Authorization (AA) Scheme.' The petitioner also challenged the validity of Rule 96 sub-Rule 10 of CGST Rules, 2017.Challenge to Rule 96 sub-Rule 10 of CGST Rules, 2017:The counsel for Union of India requested time to respond to the challenge to the vires of Rule 96 sub-Rule 10, while Mr. Rajvendra Sarswat, representing respondents No. 2 and 3, acknowledged that a show-cause notice is pending issuance to the petitioner, indicating that the writ petition might be premature except for the challenge to the vires.Court's Decision:The Court deemed the matter worthy of consideration and scheduled it for listing on 22.07.2024. Meanwhile, it directed that respondents No. 2 and 3 are restrained from taking any coercive actions against the petitioner without complying with the statutory requirements of the Rules.