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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
G. S. Kulkarni, Firdosh P. Pooniwalla, JJ.
Kunal Housewares Private Limited - Petitioner
Vs.
The Union of India - Respondent
WRIT PETITION NO. 2215 OF 2023
Decided On : 26-08-2024
Refund - Export of Goods - IGST Act, 2017, Section 16 - CGST Act, 2017, Section 54 - CGST Rules, Rule 96 - The court interpreted provisions regarding IGST refunds on zero-rated supplies, emphasizing that claiming higher drawback does not preclude IGST refunds if conditions are met.
Fact of the Case:
The Petitioner exported stainless steel goods and paid IGST, claiming refunds based on shipping bills. Despite compliance with filing requirements, the refund was not credited, leading to the Petitioner's claim for the refund of IGST paid.
Finding of the Court:
The court found that the Petitioner was entitled to a refund of IGST after deducting the differential amount of duty drawback, as the provisions of the IGST Act and CGST Act were satisfied.
Issues: Whether the Petitioner is entitled to a refund of IGST paid on exported goods despite claiming a higher rate of drawback.
Ratio Decidendi: The court held that claiming a higher drawback does not bar the refund of IGST if the exporter has complied with the relevant provisions and conditions set forth in the IGST Act and CGST Act.
Result: The Respondents are directed to grant refund of IGST after deducting the differential amount of duty drawback within 12 weeks.
JUDGMENT:
Firdosh P. Pooniwalla, J.
1. Rule. Rule made returnable forthwith. By consent of the parties, heard finally.
2. The Petitioner had exported Stainless Steel Table, kitchen and other household articles in the months of July, August and September 2017. While doing so, the documents mentioned in the table herein were issued / generated.
| Sr. | GST Invoice No. & Date | Export Invoice No. & Date | Shipping Bill No. & Date | Export General Manifest No. & Date | Bill OF Lading No. & Date | Amt of Drawback claimed(Rs.) by Punching ‘A’ | Amount of IGST Paid (Rs.) |
| 1. | 46/ | KHPL/325/17-18 | 7337308/ | 130950 | 10075017521 | 1,44,118.00 | 1,92,157.00 |
|
| 13.07.2017 | 13.07.2017 | 13.07.2017 | 24-7-2017 |
|
|
|
| 2. | 13/ | KHPL/326/17-18 | 7218237/ | 130414 | AMC0564386 | 3,95,334.00 | 5,23,608.00 |
|
| 06.07.2017 | 04.07.2017 | 07.07.2017 | 15-7-2017 | 10.07.2017 |
|
|
| 3. | 52/ 14.07.2017 | KHPL/332/17-18 14.07.2017 | 7381089/ 15.07.2017 | 129350 DT25-7-2017 | DEL074463 18.07.2017 | 2,15,832.00 | 2,87,775.00 |
| 4. | 11/ 04.07.2017 | KHPL/334/17-18 04.07.2017 | 7218238/ 07.07.2017 | 130414 15-7-2017 | FDS-NSA-1700102 10.07.2017 | 91,867.00 | 1,21,627.00 |
| 5. | 12/ 04.07.2017 | KHPL/335/17-18 04.07.2017 | 7216045/ 07.07.2017 | 130414 15-7-2017 | FDS-NSA-1700102 10.07.2017 | 46,000.00 | 60,902.00 |
| 6. | 10/ 04.07.2017 | KHPL/336/17-18 06.07.2017 | 7218240/ 07.07.2017 | 130414 15-7-2017 | FDS-NSA-1700102 10.07.2017 | 3,95,334.00 | 5,23,408.00 |
| 7. | 15/ 06.07.2017 | KHPL/337/17-18 06.07.2017 | 7218141/ 07.07.2017 | 130323 20-7-2017 | AMC0567827 17.07.2017 | 1,97,667.00 | 2,61,701.00 |
| 8. | 16/ 07.07.2017 | KHPL/338/17-18 07.07.2017 | 7231270/ 08.07.2017 | 130448 21-7-2017 | CNS-NSA-1700261 08.07.2017 | 39,651.00 | 58,565.00 |
| 9. | 19/ 08.07.2017 | KHPL/339/17-18 08.07.2017 | 7242030/ 10.07.2017 | 130752 8-7-2017 | CNS-NSA-1700265 08.07.2017 | 43,674.00 | 62,812.00 |
| 10. | 25/ 10.07.2017 | KHPL/340/17-18 10.07.2017 | 7272176/ 11.07.2017 | 130323 20-7-2017 | FDS-NSA-1700105 14.07.2017 | 91,867.00 | 1,22,489.00 |
| 11. | 26/ 10.07.2017 | KHPL/341/17-18 10.07.2017 | 7272175/ 11.07.2017 | 130323 20-7-2017 | FDS-NSA-1700105 14.07.2017 | 45,833.00 | 61,111.00 |
| 12. | 47/ 13.07.2017 | KHPL/342/17-18 13.07.2017 | 7337215/ 13.07.2017 | 131276 8-7-2017 | CNS-NSA-1700276 14.07.2017 | 50,085.00 | 66,780.00 |
| 13. | 53/ 14.07.2017 | KHPL/343/17-18 14.07.2017 | 7381090/ 15.07.2017 | 129350 25-07-2017 | DEL074463 18.07.2017 | 2,15,832.00 | 2,87,775.00 |
| 14. | 56/ 15.07.2017 | KHPL/344/17-18 15.07.2017 | 7385462/ 15.07.2017 | 131288 4-8-2017 | CNS-NSA-1700298 02.08.2017 | 66,651.00 | 88,868.00 |
| 15. | 66/ 17.07.2017 | KHPL/345/17-18 17.07.2017 | 7412845/ 17.07.2017 | 130959 4-8-2017 | FDS-NSA-1700116 31.07.2017 | 91,800.00 | 1,22,400.00 |
| 16. | 90/ 20.07.2017 | KHPL/347/17-18 20.07.2017 | 7491047/ 20.07.2017 | 130959 4-8-2017 | FDS-NSA-1700294 08.08.2017 | 33,629.00 | 44,839.00 |
| 17. | 97/ 21.07.2017 | KHPL/348/17-18 21.07.2017 | 7514739/ 21.07.2017 | 130074 27-7-2017 | OERT/0717018 24.07.2017 | 1,08,841.00 | 1,45,891.00 |
| 18. | 100 22.07.2017 | KHPL/349/17-18 22.07.2017 | 7539822/ 22.07.2017 | 131577 11-8-2017 | CNS-NSA-1700309 24.07.2017 | 29,267.00 | 43,256.00 |
| 19. | 99 22.07.2017 | KHPL/350/17-18 22.07.2017 | 7539821/ 22.07.2017 | 130959 4-8-2017 | FDS-NSA-1700295 02.08.2017 | 57,573.00 | 76,764.00 |
| 20. | 105/ 24.07.2017 | KHPL/351/17-18 24.07.2017 | 7565362/ 24.07.2017 | 131577 11-8-2017 | CNS-NSA-1700306 09.08.2017 | 61,340.00 | 81,786.00 |
| 21. | 118/ 26.07.2017 | KHPL/352/17-18 26.07.2017 | 7618734/ 26.07.2017 | 131577 11-8-2017 | CNS-NSA-1700308 09.08.2017 | 72,639.00 | 96,852.00 |
| 22. | 229/ 11.08.2017 | KHPL/367/17-18 10.08.2017 | 7988504/ 12.08.2017 | 132951 1-9-2017 | FDS-NSA-1700122 11.0 | ||
Refund of IGST on zero-rated supplies is permissible even when a higher drawback is claimed, provided the exporter meets statutory conditions.
The main legal point established in the judgment is that a petitioner is entitled to an IGST refund for zero-rated supply exports under the relevant provisions of the IGST Act and CGST Act, despite a....
Exporters are entitled to IGST refunds despite claiming higher duty drawback rates, reinforcing the principle of coherent refund applications.
Petitioners entitled to refund of unutilized input tax credit as exporters, while Circular No. 172/04/2022 restricting such claims based on deemed exports deemed inapplicable.
The court ruled that the denial of a tax refund on grounds of limitation was wrong, emphasizing the principle of unjust enrichment, and clarified that the time limit of two years for refund applicati....
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