TaxTMI 
TaxTMI 
2019 (5) TMI 85
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....e IGST paid 1 VSG/EXP/G ST/01 09.07.2017 7254660 11.07.2017 552604.10 2 VSG/EXP/ GST/02 09.07.2017 7256106 11.07.2017 730700.00 3 VSG/EXP/G ST/03 10.07.2017 7265768 11.07.2017 605987 4 VSG/EXP/G ST/04 30.07.2017 7709921 31.07.2017 306321.30 5 VSG/EXP/G ST/05 03.08.2017 7816155 04.08.2017 139867.43 6 VSG/EXP/G ST/06 08.08.2017 7903380 09.08.2017 192596.73 7 VSG/EXP/G ST/08 15.08.2017 8024352 16.08.2017 208489.13 8 VSG/EXP/G ST/011 20.08.2017 8129114 21.08.2017 166515 9 VSG/EXP/G ST/13 24.08.2017 8213317 24.08.2017 146614 10 VSG/EXP/G ST/14 24.08.2017 8213105 24.08.2017 177550 11 VSG/EXP/G ST/15 30.08.2017 8351457 31.08.2017 211768 12 VSG/EXP/G ST/16 31.08.2017 8383716 01.09.2017 152218 13 VSG/EXP/G ST/17 05.09.2017 8474843 06.09.2017 313015 14 VSG/EXP/G ST/18 06.09.2017 8501257 07.09.2017 152040 15 VSG/EXP/G ST/19 06.09.2017 8501277 07.09.2017 265114 3.According to the petitioner, as per Rule 96A of CGST Rules, ....
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....wback and avail input tax credit, CGST or IGST or refund of IGST paid on exports." Furthermore, it is the case of the petitioner that CBEC vide Circular No.37/11/2018 GST in F.No.349/47/2017 GST, dated 15.03.2018 has clarified that a supplier availing drawback only with respect to basic custom duty shall be eligible for refund of GST. 7.According to the petitioner, they are entitled to claim refund of IGST paid on exports. It is also the case of the petitioner that Circular No.05/2018-Customs, dated 23.02.2018 provides alternate mechanism with officer interface for refund of IGST paid on exports wherein, it is mentioned that "Once all the invoices pertaining to Shipping Bill are verified by the officer, the system shall calculate the scroll amount against the Shipping Bill, after subtracting the drawback amount for each invoice, where applicable and display the refund amount to the officer for approval". 8.According to the petitioner, they have claimed lower rate drawback as per Notification 131/2016(NT), dated 31.10.2016, the petitioner has mistakenly declared in the Shipping Bills that they have availed higher drawback by selecting A instead of B. 9.According to the p....
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....s already been closed for the aforementioned shipping bills by the computer system, the refund of IGST amount could not be made by the respondents to the petitioner. 14.It is also stated in the counter affidavit that amendment in the shipping bill is not possible, if EGM is closed and the shipping bill status has gone to history. They have also not disputed the circulars referred to by the petitioner in the affidavit filed in support of the writ petition, namely, Circular No.05/2018, dated 23.02.2018 and Circular No.08/2018, dated 23.03.2018. Under Circular No.05/2018, the respondents have admitted that by way of alternate mechanism to correct the error code submitted by the exporters, refund of IGST can be processed. 15.Heard Mr.A.K.Jayaraj, learned counsel appearing for the petitioner and Mr.R.Aravindan, learned counsel appearing for the respondents. 16.According to the learned counsel for the petitioner, it is not in dispute that IGST refund for the aforementioned shipping bill is payable to the petitioner. 17.The learned counsel appearing for the petitioner drew the attention of this Court to the counter affidavit filed by the respondents and in particular, he refer....
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.... 09.10.2018 cannot have retrospective effect. 22.Per contra, learned Standing Counsel appearing for the respondents fairly admitted that refund of IGST is payable for the shipping bills to the petitioner,but the same could not be processed only due to the fact that being a computer generated system, the system will not process the IGST refund, if the drawback code has not been correctly mentioned. According to him, once EGM is closed for the said exports, it cannot be reopened by the computer system. Discussion:- 23. Admittedly, due to wrong mentioning of the drawback code by the petitioner, refund of IGST for the aforementioned shipping bills could not be processed by the respondents. Only to over come such inadvertent errors, CBEC, Ministry of Finance, Government of India, issued a Circular No.8/2018, dated 23.03.2018 it reads as follows:- "CBEC has issued Circular No.5/2018-Customs dated 23.02.2018 which provided for an alternative mechanism with officer interface to resolve invoice mismatch cases. In the said circular, it was provided that the mechanism would be available for the shipping bills filed till 31.12.2017. Although the cases having SB005 error have ....
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....mputer system, it is not possible to refund the IGST amount to the petitioner. The petitioner cannot be made helpless, just because the computer system does not enable them to refund the IGST amount. Being an undisputed fact that IGST refund is payable to the petitioner, the petitioner is absolutely entitled to the IGST refund from the respondents. 26.In the counter affidavit, the respondents have referred to Circular No.37/2018, dated 09.10.2018 issued by the CBEC, which reads as follows:- "3.It has been noted that exporters had availed the option to take drawback at higher rate in place of IGST refund out of their own volition. Considering the fact that exporters have made aforesaid declaration while claiming the higher rate of drawback, it has been decided that it would not be justified allowing exporters to avail IGST refund after initially claiming the benefit of higher drawback. There is no justification for re-opening the issue at this stage." 27.As seen from the aforesaid circular, the said circular applies only to cases where the exporters had availed option to take drawback at higher rate in place of IGST refund out of their own volition. In the instant cas....