Majeed Kunnapallil Jabir Vs Superintendent (Kerala High Court)
In Majeed Kunnapallil Jabir vs. Superintendent, the Kerala High Court addressed the petitioner’s pending IGST refund claim on exports, which had been unresolved since June 2022. The petitioner argued that, under Section 54 of the CGST Act and Rule 96 of the CGST Rules, the refund should have been processed within 60 days. Additionally, the petitioner contended that being classified as a “risky exporter” had led to an unwarranted delay in refund processing, and even a provisional refund of 90%, as per Section 54(6) of the CGST Act, had not been granted.
The court directed the tax authorities to decide on the refund application within two months after providing an opportunity for a hearing. The authorities were also instructed to review the petitioner’s classification as a “risky exporter” if an application for removal from the list was submitted. This ruling reinforces the necessity of timely decision-making in IGST refunds and adherence to due process before withholding tax benefits.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The claim of the petitioner for refund of IGST paid on exports (Ext.P3) has been pending since the year 2022. It is the case of the petitioner that going by the provisions of Section 54 of the CGST Act read with the provisions of Rule 96 of the CGST Rules, the claim for refund is to be processed within a period of 60 days. It is submitted that the shipping bill itself is deemed to be the application for refund. It is submitted that the petitioner has been wrongly classified as a ‘risky exporter’ and a decision has been withheld on his application for refund.
