Case Law Details
UPS Inverter.Com Vs Union of India (Delhi High Court)
UPS INVERTER.COM (Petitioner) filed petition for the grant of refund of IGST paid on goods exported by the Petitioner during the Transitional Period.
Factually, the Petitioners is the exporter of inverters, transformers, and allied products and in the course of their business, between the transitional period of the pre and post GST Regime, they had made various exports falling under Tariff Item 8504 of the Notification No. 13/2016-Cus. (N.T.) (“Customs Non-Tariff Notification”) dated October 31, 2016 (as amended by Notification No. 41/2017-Cus.(N.T.) (“Customs Non-Tariff Notification”) (Drawback Schedule) on the payment of Integrated Goods and Services Tax (IGST). The Drawback schedule prescribed identical rates of Duty Drawback under Column ‘A’ as well as Column ‘B’ for the said tariff Order.
Since there were no guidelines from the GST or Customs department in respect of procedure to be followed in such cases, the Petitioner had claimed drawback under Column ‘A’ instead of under Column ‘B’. Then, by Circular No. 37/2018-Customs dated October 09, 2018 the Tax authority (Respondents) have denied the refund of IGST on the ground that the exporters having filed the declarations voluntarily are deemed to have consciously relinquished their IGST/ITC claims
The Petitioners states that the issue raised in the present petition is squarely covered by the judgment of Delhi High Court in TMA International Pvt. Ltd. & Ors. v. Union of India & Anr. Wherein it was held that if the Petitioner have claimed and received only the customs duty portion of the drawback and element of IGST (earlier Central Excise Duty and Service Tax) was not included in the drawback rate, granting of IGST refund would not result in double neutralization of input taxes. The Respondents have also never intended to deny a refund of IGST paid on export in cases where only custom components were claimed as drawbacks.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
