Kelvion India Pvt. Ltd. Vs Union of India & Ors. (Bombay High Court)
The Bombay High Court disposed of a group of writ petitions through a common judgment, as the facts and issues involved were identical. The petitioner is engaged in the manufacture and export of heat exchangers and allied products and had imported certain raw materials under advance authorisation, claiming exemption from basic customs duty and IGST under applicable customs notifications. The petitioner used these raw materials for manufacturing finished goods, which were exported from India. During the period from June 2019 to December 2019, exports were made on payment of IGST, and refunds were granted under the IGST Act, 2017.
Subsequently, the Directorate of Revenue Intelligence alleged that the petitioner had violated Rule 96(10) of the CGST Rules, 2017, on the ground that benefits under advance authorisation and IGST refunds were simultaneously availed. Although the petitioner asserted that not all exported goods were manufactured using duty-free imported raw materials, it repaid the IGST refunds for the periods June 2019 to December 2019 and July 2020 to September 2020, amounting to Rs. 2,82,39,137, along with interest of Rs. 38,19,915, to avoid further dispute.
The petitioner later claimed that this repayment exceeded the amount that would have been payable even if Rule 96(10) were applicable and violated. On this basis, a refund application dated 20 August 2021 was filed under the category of excess payment of tax. This application was rejected by the adjudicating authority, following a show cause notice dated 1 December 2021, and the appellate authority upheld the rejection. The petitioner challenged these orders before the High Court.
