Jwala Energy Resources Private Limited Vs Assistant Commissioners GST (Andhra Pradesh High Court)
In , the Andhra Pradesh High Court considered a dispute relating to refund of Integrated Goods and Services Tax (IGST) paid on ocean freight under reverse charge mechanism. The petitioner had imported coal for operating its power generation unit and had paid ocean freight charges on a CIF basis. Based on Entry No.10 of Notification No.10 of 2017, tax authorities required the petitioner to pay GST on the freight component. Subsequently, the Gujarat High Court in Mohit Minerals struck down the said notification entry, and the Supreme Court dismissed the Union’s appeal, thereby affirming the decision.
Following the Supreme Court judgment dated 19.05.2022, the petitioner sought refund of the IGST paid on ocean freight for the period 2018-2019 along with interest at 6% per annum. The petitioner had earlier filed a writ petition challenging the levy and seeking refund of Rs.68,36,372/-. The refund application filed on 07.07.2022 was not accepted on the GST portal, resulting in subsequent applications, and finally the application dated 13.01.2023 was acknowledged.
The refund claim was initially rejected on 22.08.2023 on the ground that it had been filed beyond the two-year limitation period prescribed under Section 54 of the APGST Act, 2017, and also because an earlier writ petition filed by the petitioner remained pending. The petitioner challenged this rejection through another writ petition. During those proceedings, the respondents stated that they were willing to sanction the refund if deficiencies were rectified. Pursuant to the High Court’s directions, the respondents refunded Rs.68,36,371/- on 07.06.2024 but rejected the claim for interest amounting to Rs.20,50,911/- by holding that interest was not payable under Sections 54 and 56 of the Act.
