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The writ petition filed by the Respondent was allowed by the HC wherein it was considered that the drawback rates being same, it only represented the Customs elements excluding Central Excise and Service Tax elements, which doesn’t get subsumed with the GST. Thus, there being no point of availing double benefit i.e. IGST refund and higher duty drawback. Basis which IGST refund was allowed along with interest. Aggrieved by the same, the Revenue filed the current Appeal.
In regards to above, referring to the decision of the Division Bench of Gujarat HC (2020-TIOL-2238-HC-AHM-GST) SC held that the Respondent had claimed IGST export refund only to the extent of the customs component and there was no error in the finding of the High Court decision. Thus, the Appeal was dismissed.
UOI vs. Awadkrupa Plastomech Pvt. Ltd. [TS-383-SC-2021-GST]
There have been several instances where taxpayers have to resort to litigation at Tribunal level in order to obtain specific relief and direction for grant of IGST refunds. This results in unreasonable delay in grant of refund of IGST which impacts the exporters and its business as a whole. Similar to the case in hand, the Gujarat HC in the decision of M/s. Amit Cotton Industries vs. Principal Commissioner of Customs [Special Civil Application No. 20126 of 2018] held that claim of duty drawback cannot be considered as a valid reason for unreasonably withholding IGST refunds. In respect thereto, CBIC shall come with a clarification which shall result in easiness to the taxpayers to avail the benefits on export along with refund of IGST.
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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