Mavenir Systems Private Limited Vs Union of India (Karnataka High Court)
Karnataka High Court held that mere non-production of the Bank Realization Certificates (eBRCs) / Foreign Inward Remittance Certificate (FIRCs) cannot be reason for rejection of refund claim specially as all the details in this regard are made available to the department.
Facts- On 05.02.2020, petitioner filed an application under RFD-01 for refund of unutilised Input Tax Credit (ITC) on account of export of services without payment of tax u/s. 54(3)(i) of the CGST Act for F.Y. 2018-19. The respondent having issued a show cause notice contending that the refund claim filed by the petitioner was liable to be rejected, the petitioner submitted a detailed reply along with attested copy of the FIRC (Foreign Inward Remittance Challan) dated 20.03.2020, pursuant to which, the refund applications of the petitioner for F.Y. 2018-19 were sanctioned by the respondent No.5 vide order dated 04.04.2020.
Subsequently, the petitioner filed one more application dated 11.05.2020 seeking refund of unutilised Input Tax Credit for F.Y. 2019-20, which was also sanctioned by the respondent No.5 vide order dated 18.05.2020. Subsequently, respondent No.4 decided to review the aforesaid Refund Orders and accordingly, filed an appeal in the year 2021. The said appeal having been contested by the petitioner culminated in the impugned order dated 29.04.2022 passed by the respondent No.2 – Appellate Authority setting aside the refund Sanction Order and rejecting the refund claim of the petitioner. Simultaneously, the respondent No.3 issued a show cause notice dated 12.05.2021 calling upon the petitioner to show cause as to why the refund of Rs.22,49,60,792/- should not be demanded and recovered u/s. 73 of the CGST Act together with interest and penalty. The said show cause notice also having been replied to by the petitioner on 26.06.2021, the respondent No.3 passed the impugned order dated 07.03.2023 in Form GST DRC 07 directing recovery of the amounts from the petitioner. Aggrieved by the impugned orders dated 29.04.2022 and 29.06.2022 and consequential demand notices, the petitioner is before this Court by way of the present petition.
