The Petitioner had challenged the order of the Appellate Authority denying refund due to them exports had been made outside India and such exports were regarded as zero-rated supplies u/s. 16 of the IGST Act on which the Petitioner was entitled to refund of ITC u/s. 54(3) of the CGST Act.
The Respondents had rejected the refund on sole ground that any exports through the Foreign Post Office (‘FPO’) would be eligible for zero-rated exports and the refund of such duty could be claimed only vide Notification No. 48/2018 – Customs (N.T.) dated 04 June 2018 read with Circular No. 14/2018 – Customs dated 04 June 2018 and that the Petitioner refund claim pertains to August 2017 and September 2017 i.e. prior to the date of Notification.
The Delhi HC observed that Circular No. 14/2018 was neither clarificatory, nor it determined the eligibility of allowing ITC on exports. It was further observed that in any event, new procedure cannot be made applicable from a retrospective date. The HC further noted that refunds shall be examined with reference to their compliance with the extant provisions, including law and procedures relating to GST and Customs. Basis the above observations, the HC set aside the orders passed by the Respondent and remanded the matter back to the original Adjudicating Authority.
Medical Bureau vs. Commissioner of CGST [W.P. (C) 3917/2020]
Disclaimer:
The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.
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