Export refund valuation: FOB value in GST invoice governs ITC refund, subject to lower shipping bill value where applicable.

For refund of unutilised input tax credit on exports, the relevant value is the FOB value declared in the GST invoice, not the net amount payable after deducting free-supplied gold. Where a discrepancy exists, the refund mechanism under section 54 of the CGST Act requires comparison of the invoice value with the corresponding shipping bill value, and the lower figure governs only if the shipping bill value is lower. The authority had wrongly treated the net payable amount as the invoice value, so the refund order was set aside and the matter remanded for reconsideration in accordance with law.

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Issues: Whether, for computing refund of unutilised Input Tax Credit on export of goods, the value to be considered is the FOB value declared in the GST invoice or the net amount payable after deduction of free-supplied gold, and whether the refund had to be restricted to the lower of the invoice value and the shipping bill value.

Analysis: The refund mechanism under section 54 of the CGST Act required comparison of the value declared in the GST invoice with the corresponding shipping bill value, with the lower figure being relevant where there is a discrepancy. The invoice in question recorded an FOB value and separately showed the value of gold supplied free of cost as advance, with only the balance shown as payable. The relevant value for refund purposes was therefore the full FOB value declared in the invoice, not merely the net realisation amount. The authority had wrongly adopted the net payable figure as the invoice value.

Conclusion: The value to be considered for refund was the FOB value declared in the GST invoice, subject to adoption of the lower figure only if the shipping bill value was lower. The impugned refund order was set aside and the matter was remanded for reconsideration in accordance with law.

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