IGST refund rejection based on invalid circular set aside; refund claim must be reconsidered under the governing law.

Rejection of the IGST refund claim based on Circular No. 37/2018 was unsustainable because the circular had already been held invalid as inconsistent with the statutory provisions and the IGST refund Rules. The authority had rejected the claim solely on the ground that availing the higher drawback rate barred refund under that circular, but that premise could not stand in law. The impugned proceedings were set aside, and the refund claim was directed to be reconsidered afresh in accordance with law.

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Issues: Whether rejection of the petitioner's claim for IGST refund on the basis of Circular No. 37/2018 dated 09.10.2018 was sustainable, and whether the refund claim required fresh reconsideration in light of the governing law.

Analysis: The impugned rejection rested entirely on the premise that availing the higher rate of drawback barred IGST refund under Circular No. 37/2018 dated 09.10.2018. The circular had already been held invalid in the decisions relied upon, on the ground that it was inconsistent with the statutory provisions and the Rules governing IGST refund. The same legal position applied to the present claim.

Conclusion: The rejection was unsustainable. The impugned proceedings were set aside and the petitioner's refund claim was directed to be reconsidered afresh in accordance with law.

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