Kerala HC Orders IGST Refund for Exported Items

Great Win Exports Vs Commissioner of Customs (Kerala High Court)

Introduction: The Kerala High Court recently issued a significant judgment in the case of Great Win Exports vs. Commissioner of Customs, pertaining to the refund of Integrated Goods and Service Tax (IGST) on exported items. In this article, we will delve into the details of this case, the court’s directives, and the implications of this decision.

Detailed Analysis: The petitioner in this case, a registered dealer under the GST Act, is engaged in the export of seafood. They sought a refund of IGST on the items they exported, amounting to Rs. 8,35,997. To support their claim, the petitioner submitted shipping bills (Exhibits P-2 and P-3) and an invoice dated 20.08.2019 (Exhibit P-4). Rule 96 of the Central Goods and Services Tax Rules, 2017, outlines the criteria for refunding IGST on specific goods.

However, the petitioner encountered an issue where only a partial refund of Rs. 21,639 was processed for the Exhibit P-3 shipping bill. The remaining refund, as per the petitioner’s claim, remained pending. In response to this, the petitioner submitted representations as Exhibits P-5 and P-6 to the respective respondents (3rd and 4th). Regrettably, these representations remained unaddressed for an extended period.

The court, taking into account these circumstances, disposed of the writ petition by directing the 4th respondent to consider Exhibits P-5 and P-6 and process the petitioner’s claim for a refund of IGST concerning the shipping bills (Exhibits P-1 and P-3) in accordance with the law. The petitioner was granted an opportunity to present their case and substantiate their claim for IGST refund on the exported items mentioned in the exhibits. The court stipulated a two-month timeframe for the necessary order to be issued.

Conclusion: The Kerala High Court’s decision in the Great Win Exports vs. Commissioner of Customs case highlights the importance of timely processing and addressing refund claims related to IGST on exported items. This judgment underscores the need for efficiency and transparency in the handling of such claims, ensuring that legitimate exporters receive the refunds they are entitled to. It sets a precedent for fair treatment and expeditious resolution of similar cases in the future, ultimately benefiting businesses engaged in export activities.

FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT

1. The present writ petition under Article 226 of the Constitution of India has been filed for the following reliefs;

(a) issue appropriate order of directing the respondents 1 to 3 to consider and dispose Exhibits P-5 and P-6 representations pertaining to the issue of refund of Integrated Goods and Service Tax within a time frame fixed by this Hon’ble Court;

(b) issue appropriate order of directing the respondents 1 to 3 to scrutinise the documents submitted by the petitioner along with Exhibits P-1 and P-3 shipping bills while examining the issue of refund of Integrated Goods and Services Tax within a time frame fixed by this Hon’ble Court;

(c) Issue appropriate order of directing the respondents 1 to 3 to take appropriate measures for reckoning and correcting errors in the electronic portals which constitute the data base for processing refund;

(d) Grant such other and further reliefs as this Hon’ble Court may deem fit to grant in the facts and circumstances of the case;

(e) Dispense with the filing of English translation of documents in vernacular language.

2. The petitioner is a registered dealer under the provisions of GST Act. The petitioner is in the business of export of sea foods. The petitioner has claimed refund of Integrated Goods and Service Tax on the exported items. As per the submissions by the Learned Counsel for the petitioner, Rs.8,35,997/- is liable to be refunded to the petitioner for which the petitioner had submitted shipping bills vide Exhibits P-2 and P-3. The petitioner has also submitted invoice dated 20.08.2019 i.e. Exhibit P-4. Under Rule 96 of the Central Goods and Services Tax Rules, 2017, certain goods are considered as goods for refund of Integrated Goods and Service Tax.

3. Learned Counsel for the petitioner submits that the refund has been processed partially and he was refunded Rs.21,639/- (Rupees Twenty one thousand six hundred and thirty nine only) in respect of the Exhibit P-3 shipping bill. However, remaining refund as per the claim of the petitioner has not been given for which the petitioner has moved Exhibits P-5 and P-6 representations before the 3^rd and 4^th respondents respectively. The said representations have remained pending for consideration for more than years.

3. Considering the aforesaid facts and circumstances of the case, the present writ petition is disposed of with direction to the 4th respondent to take into consideration of Exhibits P-5 and P-6 and process the claim of the petitioner for refund of Integrated Goods and Service Tax in respect of the shipping bills Exhibits P-1 and P-3 in accordance with law. The petitioner may be afforded an opportunity of being heard to substantiate his claim for refund of Integrated Goods and Service Tax for the exports reflected in the Exhibits P-1 and P-3 shipping bills. The necessary order should be passed within a period of two months.