TaxTMI 
TaxTMI 
2026 (6) TMI 1054
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....,40,223.80/- to the Petitioner No.3) paid on the goods exported by the Petitioners during the period beginning from July 2017 to June, 2018. "ii) Issue Writ of Mandamus or any other writ or orders directing Respondent no. 4 to forward details of goods exported by the Petitioners during the period beginning from July 2017 to June, 2018 to the Respondent No. 3 for processing of the IGST refund. iii) Pass any other orders, writ or directions which this Hon'ble Court deems fit and appropriate in the facts and circumstances of the instant case." 2. The factual basis which prompted the petitioners to approach this Court for filing of the present petition are that the petitioners are manufacturers cum traders of various items, details of which are provided in the petition. For the purpose of fulfilling the supply orders issued by the international customers, the petitioners have availed the services of the Government Postal Service as well as private companies for delivery of the goods. 3. According to the petitioners, they have exported subject goods through various small consignments through authorised Foreign Post office, who in turn has issued the receipts ....
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....Customs, wherein though the procedure for filing Postal Bill of Entry and capturing data was prescribed by Advisory No. 12/2017, the request of the petitioners, in absence of their being procedure, was not processed. 12. The aforesaid was in light of the fact that the Foreign Post Office had issued a communication dated 2nd July, 2022 stating that the data is not available, however, the details were sought in regard to the export carried out. 13. Since, the request of the petitioners was not processed, the petitioners were prompted to write the communications viz. letters/emails, to the respondents, which are produced at annexure P-8 collectively. 14. Amongst others, the petitioners produced various communications, including a communication addressed to the Joint Commissioner of Customs (Export), New Customs House, IGI Airport, Delhi, dated 2nd November, 2021, copy of which was also furnished to the respondent Foreign Post Office. The petitioners also addressed another communication dated 10th January, 2022, reiterating the aforesaid request and concern. 15. It appears that the respondents in spite of the aforesaid communication have chosen not to process the request of....
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....ght into force and as per the Act the Petitioners became eligible for IGST refund on the exports done through Foreign Post Office during period July, 2017 to June, 2018 but due to lack of any prescribed procedure during the period, the Petitioners were unable to claim the rightful refund. 12. That it was only on 04/06/2018 that the Board issued a Notification [48/2018-Cus.(N.T)], issuing the Export by Post Regulation, 2018, under Section 157 read with Section 84 of the Customs Act, 1962. These regulation were issued to further business activities from any Foreign Post Office notified under sub-section 7 of the Customs Act, 1962. As per Regulation 4 of the Export by Post Regulation, 2018, a specific form (Form-I, Postal Bill of Export-I) was mandated to be presented to the proper officer at the foreign post office for clearance of export/import of goods. Vide aforesaid Regulation, the procedure to claim IGST refund was laid down but same were made effective w.e.f June, 2018. Copy of the Notification [48/2018-Cus.(N.T)] dated 04/06/2018 is annexed herewith as Annexure P-5. 13. That, on 04/06/2018, the Board issued Circular 14/2018-Cus., titled "Ecommerce ex....
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.... the ICES Compact Application for Non-EDI sites ("ICAN") module on ICES from the same date. The processing of IGST refunds for Postal Exports hinges on the availability of uploaded export details on the ICAN module on ICES. However, the mechanism for uploading export details for the period preceding 03.07.2018 is unavailable, thereby impeding the of refund claims under the present petition." 21. The aforesaid affidavit is filed and duly sworn by the Chhuttan Lal Meena, who was posted as an Assistant Commissioner. 22. Similarly, the respondent/Foreign Post Office has also filed their counter affidavit in reply and the relevant pleadings in the said counter affidavit are as under:- 7. PARA 1, 2, 3, 4, 5 AND 6:- In response to Paras No. 1, 2, 3, 4, 5, and 6 of the Petition, it is most respectfully submitted that the averments contained therein pertain to matters wholly unconnected, unrelated, and having no bearing whatsoever upon Respondent No. 5. Accordingly, the averments made therein appear to be misconceived and without any factual or legal basis, and are therefore liable to be respectfully disregarded. 8. PARA 7:- It is respectfully submitted that the cont....
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....e 96 of the CGST Rules, which reads thus:- SECTION 16(3) of the IGST Act, 2017 16(3) A registered person making zero rated supply shall be eligible to claim refund of unutilised input tax credit on supply of goods or services or both, without payment of integrated tax, under bond or Letter of Undertaking, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder, subject to such conditions, safeguards and procedure as may be prescribed: Provided that the registered person making zero rated supply of goods shall, in case of non- realisation of sale proceeds, be liable to deposit the refund so received under this sub-section along with the applicable interest under section 50 of the Central Goods and Services Tax Act within thirty days after the expiry of the time limit prescribed under the Foreign Exchange Management Act, 1999 (42 of 1999.) for receipt of foreign exchange remittances, in such manner as may be prescribed. RULE 96 OF THE CGST RULES, 2017 Rule 96. Refund of integrated tax paid on goods [or services] exported out of India.- (1) The shipping bill filed by [a....
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....he applicant mentioned in his registration particulars and as intimated to the Customs authorities. (4) The claim for refund shall be withheld where,- (a) a request has been received from the jurisdictional Commissioner of central tax, State tax or Union territory tax to withhold the payment of refund due to the person claiming refund in accordance with the provisions of sub-section (10) or sub-section (11) of section 54; or (b) the proper officer of Customs determines that the goods were exported in violation of the provisions of the Customs Act, [1962; or] [(c) the Commissioner in the Board or an officer authorised by the Board, on the basis of data analysis and risk parameters, is of the opinion that verification of credentials of the exporter, including the availment of ITC by the exporter, is considered essential before grant of refund, in order to safeguard the interest of revenue.] (5) [***] [(5A) Where refund is withheld in accordance with the provisions of clause (a) or clause (c) of sub-rule (4), such claim shall be transmitted to the proper officer of Central tax, State tax or Union territory tax, as the case may be, ....
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....Custom Officers, felt handicapped, as there is procedure prescribed to process the refund by the CBITC. 26. This matter was time and again heard by this Court and lastly on 21st May, 2026, wherein the assistance of the learned Additional Solicitor General was sought in this matter, who was present in this Court for some other matter. Prior to the same, the hearing is also attended by the Commissioner of Customs. 27. An assurance was given by the learned Additional Solicitor General that the issue shall be immediately looked into and resolved. 28. The matter was prior to the aforesaid date i.e. in between the notice issued on 4th March, 2024 till 21st May, 2026, was heard number of times and sufficient and ample opportunity was given to the Custom Authorities to redress the grievance of the petitioners, in view of the statutory mandate under Section 16(3) of the IGST Act and the Rules as referred to above. 29. During the last few hearings we have also alerted Mr. Ojha, learned counsel for the Customs that he should bring the aforesaid fact to the notice of the Chairman of the Board so that appropriate steps shall be taken to resolve the issue. 30. From the stand taken....