Techno Waxchem Private Limited Vs Union of India & Ors. (Calcutta High Court)
In Techno Waxchem Private Limited Vs Union of India & Ors., the Calcutta High Court examined the validity of proceedings initiated under Rule 96(10) of the CGST Rules after the said provision had been omitted from the statute book.
The petitioner, a manufacturer and exporter of chemical products used in the rubber industry, imported inputs including Resorcinol under the Advance Authorisation Scheme. The petitioner exported finished goods and claimed refund of Integrated Goods and Services Tax (IGST) paid on exports amounting to Rs. 6.28 crore for the period October 2017 to March 2022.
The dispute arose because the authorities alleged that the petitioner had availed a double benefit by importing inputs without payment of IGST under exemption notifications while simultaneously claiming refund of IGST paid on exports. According to the department, this violated Rule 96(10) of the CGST Rules, which restricted refund of IGST in cases where benefits under specified customs notifications had been availed.
The petitioner received communications from the department seeking documents relating to Advance Authorisation licences, shipping bills, export invoices, and GST returns. Subsequently, summons were issued by the DGGI under Section 70 of the CGST Act. Thereafter, a notice in Form GST DRC-01A was issued advising repayment of Rs. 6.28 crore, followed by a show cause notice dated 27 September 2023 under Section 74 of the CGST Act alleging inadmissible refund of IGST in contravention of Rule 96(10).
