Case Law Details
Tonbo Imaging India Pvt Ltd Vs Union Of India (Karnataka High Court)
Rule 89(4)(c) is ‘ultra-vires’ to the provisions of GST law and held ‘unconstitutional’
The Hon’ble Karnataka High Court in M/s. Tonbo Imaging India Pvt Ltd v. Union of India [W.P.C No. 13185 of 2020] dated February 16, 2023] has held that, Rule 89 (4)(c) of the Central Goods and Service Tax Rules, 2017 (CGST Rules) which restricts the exports made without payment of tax (i.e., under Letter of Undertaking model (LUT Model) to 1.5 times value of like goods supplied domestically is unconstitutional and ultra vires of the provisions of the GST law.
Facts:
M/s. Tonbo Imaging India Pvt. Ltd (“the Petitioner”) develops innovative micro-optic designs for real-world applications. The Petitioner exported various customized products during the period from May 2018 to March 2019.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
Please clarify me if an export under CIF terms what is the IGST Value should be declared in Shipping Bills to get Refund of IGST i.e. if FOB or CIF value should be declared as IGST Values in Shipping Bills and based on the same if refund of IGST is eligible on CIF Values since there is provision available in shipping bills to enter the IGST manually.