Case Law Details
Tagros Chemicals India Pvt Ltd Vs Union Of India (Gujarat High Court)
Gujarat High Court held that refund claim of inadvertently charged IGST @18% instead of concessional rate of 0.1% duly available as merely because by mistake, the duties are paid on the goods which are exempted from payment does not mean that the goods would become goods liable for the duty under the Act.
Facts- The petitioner had received purchase order from registered exporter viz., Quality Biz Chem India Pvt. Ltd., Mumbai to supply the goods at the concessional rate of IGST at the rate of 0.1% in terms of Notification No.41/2017 – Integrated Tax (Rate) dated 23.10.2017 as they intended to export the goods.
Accordingly, the petitioner had supplied the goods to the buyer on payment of full duty (under an error) of IGST @ 18% instead of concessional rate of 0.1%.
The buyer, Quality Biz Chem India Pvt. Ltd., Mumbai has exported the goods under shipping bill dated 06.07.2019, which bears the details of the petitioner’s GSTIN and tax invoice. Thereafter, the petitioner found out in the month of March, 2020 that under a mistake, they had paid the full rate of 18% duty instead of 0.1%, therefore, the petitioner issued credit note dated 16.03.2020 for the excess amount of tax to the buyer. The details of credit note were duly mentioned in GSTR-1 return for the month of March, 2020, however, the petitioner could not reduce the turnover and GST liability as there were no outward supplies during the said month and subsequent month.
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