GST refund on zero-rated exports cannot be denied by circular when statutory refund rules remain applicable.

Refund of integrated goods and services tax on zero-rated exports under the statutory scheme in Sections 16 and 54 of the Integrated Goods and Services Tax Act, 2017 read with Rule 96 of the Central Goods and Services Tax Rules, 2017 could not be denied by reliance on Circular No. 37/2018-Customs dated 09.10.2018. The circular was held subordinate to the governing rule and incapable of defeating the exporter's refund entitlement. The prior view that departmental instructions cannot override the refund mechanism under Rule 96 was followed, and relief in favour of the exporter was maintained.

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Issues: Whether refund of integrated goods and services tax paid on exports could be denied on the basis of Circular No. 37/2018-Customs dated 09.10.2018 when the refund claim was made under the integrated goods and services tax regime and the relevant rule governing refund remained applicable.

Analysis: The export was treated as a zero-rated supply and the claim for refund was founded on the statutory scheme under Sections 16 and 54 of the Integrated Goods and Services Tax Act, 2017 read with Rule 96 of the Central Goods and Services Tax Rules, 2017. The circular relied upon by the Revenue was held not to prevail over the statutory rule. The prior view that the circular could not defeat the entitlement under Rule 96 had already been accepted, and the same legal position had been followed by the High Court in an earlier decision.

Conclusion: The refund could not be denied on the basis of the circular, and the order granting relief to the exporter was upheld.

Final Conclusion: The Revenue's challenge failed, and the exporter's entitlement to refund under the statutory scheme was maintained.

Ratio Decidendi: A departmental circular cannot override a statutory rule governing refund of integrated goods and services tax on zero-rated exports.

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