IMPORTANT POINT
The Customs authorities have the power and jurisdiction to make corrections of any clerical or arithmetical mistakes or errors arising in any decision or order due to any accidental slip or omission at any time, which would include an order of self-assessment post out of charge.

1 All these four petitions involve common question of facts and law. Therefore, they are being decided together after having been heard.

W.P.(C) Nos.5394/2024, 4670/2024 and 12195 of 2024

2. Sri K.Srikumar, Senior Advocate assisted by Adv.M.Balagopal addressed the arguments in WPC Nos.5394 of 2024 and 12195 of 2024 whereas in Writ Petition (c) No.6090/2024, Sri.Anil D.Nair, Senior Advocate and in WPC No.6090 of 2024 Smt.Ammu Charles.

3. Brief facts of each Writ Petitions which are relevant for the purposes of deciding the writ petitions are noted hereunder:

WPC No.5394 of 2024

3.1 The petitioner, a Partnership firm, is engaged in the business of manufacture and export of mats, mattings, other floor coverings of coir and other textile materials. The petitioner is a registered dealer under the CGST/IGST Act and Rules made thereunder. The petitioner would import raw materials for the purpose of exporting finished goods under Advanced Authorisation Scheme. Under the said Scheme, an exporter is entitled to import inputs by claiming exemption of Basic Customs Duty (“BCD”) and Integrated Goods and Services Tax (“IGST”). The petitioner requested for amendment of Bill of Entry by the 4th respondent after payment of IGST and interest thereon. However, the said request has been declined and the impugned show cause notice, Ext.P7 and Ext.P12 order, have been issued which are under challenge in the present Writ Petition.

3.2 The second respondent initiated enquiry into the availment of IGST refunds by exporters operating under 100% EoU Scheme and Advance Authorisation Scheme wherein they had availed the exemption of IGST on imported inputs under the Notification Nos.78 of 2017 and 79 of 2017, both dated 13.10.2017. On submission of details as called, a personal hearing was given by the 2nd respondent to the petitioner. The petitioner submitted that they were availing IGST exemption on imported inputs and had availed simultaneously the IGST refund on the goods exported. The petitioner was given an option by the 2nd respondent to remit the IGST exemption availed on imported inputs along with applicable interest for regularizing the refund granted to the petitioner.

3.3 The 4th respondent issued notice dated 4th March 2022 calling upon the petitioner and other exporters to pay the IGST along with applicable interest in all the Bills of Entry where the input goods were imported by availing the IGST exemption under Advance Authorisation/EoU Scheme. The said notice dated 4th March 2022 has been placed on record as Ext.P3.

3.4 In compliance of the demand in Ext.P3 made by the 4th respondent, the petitioners remitted the IGST against all the 23 Bills of Entry by various duty payment challans. Thereafter, the petitioners remitted the total amount of Rs.1,25,38,425/-being the total IGST, availed as exemption against the imported inputs. On payment of IGST, the petitioner requested the 4th respondent for amendment of the Bills of Entry so as to include IGST paid in the said Bills of Entry. In the meantime, the second respondent issued show cause notice dated 31st July 2023 to the petitioner directing the petitioner to show cause as to why an amount of Rs.2,75,38,128/-being the ineligible amount of IGST refund sanctioned to the petitioner in contravention to Rule 96(10) of the CGST Rules, 2017 should not be demanded and recovered along with the applicable interest under Section 73(1) of the CGST Act. Notice also proposed to impose penalty on the petitioner.

3.5 Thereafter, the petitioner on 11.10.2023 paid the interest due on the IGST against all the 23 Bills of Entry and had submitted details of interest payments during the personal hearing held on 12th October 2023.

3.6 The petitioner made a request, Ext.P10 to the 4th respondent to expedite the amendment process of Bills of Entry as the petitioner had remitted the entire IGST and interest against the import/Bills of Entry in order to regularise the refund of IGST paid on export of finished goods. The petiti