IGST REFUND

[JIGNESH SITAPARA]

Sir, i was export in July 2017 with paid IGST. But, I was selected higher rate drawback SR. NO. A at the time export. Now, custom department said to us not possible IGST refund as per circular 37/2018. Now, what to do?

[Mahir S]

The department is correct in not allowing refund based on said circular.

However, there is a judgment of Madras High Court in favour of the party.

[KASTURI SETHI]

Yes, Sir. It is crystal clear.

[DR.MARIAPPAN GOVINDARAJAN]

Mahir sir,

May the details of the court case may be shared in this forum?

[Mahir S]

Yes Sir, I will surely share the case detail.

[Mahir S]

Madras High Court

M/S.Vsg Exports Pvt. vs The Commissioner Of Customs on 2 April, 2019 = 2019 (5) TMI 85 - MADRAS HIGH COURT

 

[Mahir S]

GovindaRajan Sir,.

I have not yet gone into full details of the case, so not aware if any further appeal was preferred or any subsequent judgement on the issue.

[KASTURI SETHI]

Sh.Mahir S, Sir has rightly posted this case law. As per EXCUS status, the department has not challenged the order of Madras High Court. The case was decided on 2.4.2019. Had the department filed an appeal with Supreme Court, EXCUS would have shown such status. Full case law is appended below :-

2019 (28) G.S.T.L. 421 (Mad.) = 2019 (5) TMI 85 - MADRAS HIGH COURT VSG EXPORTS PVT. LTD. Versus COMMISSIONER OF CUSTOMS, TUTICORIN

[Mahir S]

Kasturi Sir, Thnx for the update..

[KASTURI SETHI]

2019 (29) G.S.T.L. 200 (Guj.) = 2019 (7) TMI 472 - GUJARAT HIGH COURT AMIT COTTON INDUSTRIES Versus PRINCIPAL COMMISSIONER OF CUSTOMS

 

 

 

[KASTURI SETHI]

2020 (7) TMI 455 - GUJARAT HIGH COURT M/S. AMIT COTTON INDUSTRIES THROU PARTNER, VELJIBHAI VIRJIBHAI RANIPA VERSUS PRINCIPAL COMMISSIONER OF CUSTOMS

 

[KASTURI SETHI]

Sh.Mahir S Sir Credit goes to you for keeping track of case law and giving clue. You have laid the foundation for further search in the interest of querist/tax payer/trade & industry. Now let us wait for the decision of High Court for the hearing held on 20.7.20 wherein the department refused to sanction refund despite High Court order. I am referring to last case law posted yesterday.

[Mahir S]

Thank you so much Sir for the latest update and kind words..

AI Summary

IGST refund: administrative circular denying refunds challenged by judicial decisions supporting refunds, creating compliance uncertainty.
The issue is entitlement to IGST refund after an exporter paid IGST but was subsequently selected for a higher-rate drawback; the department refused refunds relying on an administrative circular, while reported high court decisions have recognised refund claims, and at least one case shows the revenue did not appeal, creating a conflict between administrative guidance and judicial precedents affecting refund entitlement.