Shobikaa Impex Private Limited Vs Union of India (Madras High Court)
In the case of Shobikaa Impex Private Limited Vs Union of India, the Madras High Court reviewed a dispute regarding the petitioner’s IGST refund claims on exported goods. Shobikaa Impex, a 100% Export-Oriented Unit, erroneously claimed refunds under Rule 96 of the CGST Rules, 2017, instead of Rule 89. The impugned order demanded repayment of ₹22.5 crore, along with interest and penalties, citing ineligible refunds on capital goods and inputs. The petitioner argued that procedural irregularities prevented them from rectifying the claims before amendments to Rule 96 in July 2022 allowed adjustments through the electronic cash ledger. They had partially reversed the refund claims, remitting ₹1.15 crore and interest of ₹49.59 lakh. The Court emphasized that procedural lapses should not obstruct legitimate export incentives, referencing prior Supreme Court judgments underscoring justice over procedural constraints. Acknowledging the petitioner’s eligibility for exemptions under Rule 89 and corresponding CBEC notifications, the Court set aside the impugned order. The case was remitted to the adjudicating authority to reassess the claims under Rule 89, considering amendments to Rule 96 and related instructions. The authority was directed to complete this process within three months.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
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