Case Law Details
Tulip Nilgiris Exports Pvt Ltd Vs Additional Commissioner of Central Taxes and Central Excise (Appeals) (Madras High Court)
In a significant ruling, the Madras High Court, in the case of Tulip Nilgiris Exports Pvt Ltd vs Additional Commissioner of Central Taxes and Central Excise, has permitted the clubbing of unutilized Input Tax Credit (ITC) refund claims beyond the calendar month for IGST on zero-rated exports. The petitioner, an exporter of processed tea, challenged the appellate order that denied the refund claim on unutilized ITC.
The petitioner availed ITC for procuring tea and, as per Section 16(3) of the Integrated Goods and Services Tax Act, 2017, had two options for exports. The petitioner, after choosing the first option, claimed a refund for the period from July 2017 to November 2017. Subsequently, the petitioner claimed an additional refund for the said period and for May 2018. While the June 2018 claim was accepted, the claims for May 2018 and July 2017 to November 2017 were rejected.
The court noted that the refund claim was made within two years from the relevant date, which, as per Section 54, is the date of export. Circular No. 37 was cited, allowing the clubbing of refund claims for more than one calendar month or quarter. The court rejected the restriction on claims spanning multiple financial years, following the precedent set by the Delhi High Court.
The appellate authority’s conclusion that refund claims can only be made for a specific calendar month was deemed contrary to statutory prescription and Circular No. 37. The order was quashed, and the matter remanded to the authorities to readjudicate the refund application, considering the observations in the judgment.
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