Vimla Food Products Vs Union of India (Gujarat High Court)
Drawback claimed at higher rate instead of lower rate & Returned: HC directs sanction of IGST refund in respect of goods exported ‘Zero Rated Supplies’
In the case of Vimla Food Products v. Union of India, decided by the Gujarat High Court, the central issue revolved around the refund of Integrated Goods and Services Tax (IGST) on goods exported under the category of ‘Zero Rated Supplies’. Here’s a comprehensive summary of the case:
Background and Petitioner’s Claims:
Vimla Food Products, engaged in the export of Organic Soya Bean Feed Grade, filed a writ petition under Article 226 of the Constitution of India seeking relief from the Gujarat High Court. The petitioners claimed IGST refund amounting to Rs. 12,00,800 for goods exported under three shipping bills dated 28th July 2017, 2nd August 2017, and 7th August 2017. They contended that as per their filings (GSTR-1 and GSTR-3B), they had complied with all statutory requirements for claiming the refund.
The petitioner’s grievance was that despite their compliance, the refund had been withheld by the authorities arbitrarily. They had also mistakenly claimed a higher rate of drawback under option “1201A” instead of the correct lower rate under option “1201B” while generating shipping bills. They rectified this error and returned the excess drawback amount.
