Kunal Housewares Private Limited Vs Union of India and Ors. (Bombay High Court)
Summary: In the case of Kunal Housewares Private Limited Vs. Union of India, the Bombay High Court addressed a dispute over the refund of Integrated Goods and Services Tax (IGST) on exported goods. The petitioner, Kunal Housewares, argued that under Section 16 of the IGST Act, exported goods are “Zero Rated Supplies,” making them eligible for an IGST refund. The petitioner had paid IGST and filed the necessary GSTR forms but faced delays and denials from the customs authorities due to the choice of higher drawback rates. The petitioner contended that the shipping bill should serve as the refund application and that IGST refunds should not be withheld based on the drawback rate selected. The court’s ruling emphasized that Section 54 of the Central Goods and Services Tax (CGST) Act and Rule 96 of the CGST Rules should govern IGST refunds, irrespective of the drawback rate claimed. Previous judgments confirmed that refunds should be processed even if higher drawbacks are claimed, provided the differential drawback amount is refunded. The court ultimately determined that withholding the IGST refund due to higher drawback claims was unjustified, aligning with earlier judicial precedents.
