Akay Natural Ingredients Private Limited Vs union of India (Kerala High Court)
In this case before the Kerala High Court, the petitioner, an export-oriented unit engaged in the manufacture of flavours and allied products, challenged a show cause notice and consequential proceedings initiated for recovery of IGST refund already granted in relation to exports made during the period from 23.10.2017 to 08.09.2018.
The petitioner had imported raw materials from outside India and availed the benefit of Notification No. 78/2017-Customs dated 13.10.2017. In respect of exports made under shipping bills during the above period, the petitioner claimed refund of IGST on goods exported on payment of IGST. The refund claims were processed and allowed after being found consistent with Rule 96(10) of the CGST Rules.
Subsequently, the third respondent issued Ext.P1 show cause notice seeking recovery of the refund amount already granted. The basis for the proposed recovery was Notification No. 54/2018 and the Gujarat High Court judgment in Cosmo Films Limited v. Union of India reported in [2020(10) TMI] 1099, where it had been held that Notification No. 54/2018 was effective from 23.10.2017. According to the respondents, the amendment introduced into Rule 96(10) of the CGST Rules by Notification No. 54/2018 operated retrospectively from 23.10.2017, making the petitioner ineligible for the refund already granted.
