Assistant Commissioner of Customs Vs Modern India Products (Madras High Court)
The Hon’ble Madras High Court of Madurai Bench in the case of M/s Modern India Products v. The Assistant Commissioner of Customs House IGST Section & Ors. [Writ Appeal (MD) No. 1559 of 2021 dated February 21, 2025], allowed refund claim by the assessee of the Integrated Goods and Services Tax (“the IGST”) refund for exports that would qualify as zero -rated supply. While Circular No. 37/2018-Customs dated October 09, 2018 (“the Circular”) relied upon by Standing Counsel to state that if duty drawback is claimed, refund of IGST amount cannot be sought. The Court relied on the Hon’ble Gujarat High Court case wherein it was held that the Circular cannot prevail over Rule 96 of the CGST Rules.
Facts:
M/s Modern India Products (“the Petitioner”) is an exporter of goods known as “absorbent gauze roll”. The export was made on September 26, 2017. The goods were valued at Rs.12,72,827/- and the Petitioner paid a sum of Rs.2,54,449/- towards IGST.
The Petitioner contends that the exports would come under zero rated supply and they are entitled to refund of the IGST amount in terms of Sections 16 and 54 of the IGST Act read with Rule 96 of CGST Rules.
