Case Law Details
Medical Bureau Vs Commissioner of Central Goods And Services Tax Delhi North & Ors. (Delhi High Court)
The issue under consideration is whether the denial of the refund to the petitioner against exports of goods outside India on the sole ground that petitioner had exported goods through Foreign Post Offices is justified in law?
HC states that Circular No. 14/2018-Customs dated 04th June, 2018 does not determine the eligibility of allowing refunds of ITC on exports, but provides that such refunds are permissible, so as to dispel any doubts in the minds of exporters regarding their eligibility to claim refunds of ITC in case of exports through postal mode. The impugned circular mentions that to facilitate refund of ITC, data will be captured and uploaded through an off-line utility (ICAN-lite) provided by DG (Systems) and it was issued with the objective and purposes of prescribing customs compliances for the exports done under postal mode and not to clarify on the eligibility or otherwise of refunds on such exports. The subject sentence in the circular cited by the adjudicating authorities, “Any IEC holder exporting goods through the FPO, will be eligible for zero rating of exports, by way of IGST refund or discharge of LUT. Those who do not wish to avail this facility or fall in the category of Exempted/Non-Taxable are also permitted to export under the same procedure.”, was to make it amply clear that, refund of ITC would also be available, for exports through the postal mode, if otherwise eligible. That, the deponent respectfully submits, the said circular is not intended to be a clarification, much less determination, of the refund issue. The refunds shall be examined with reference to their compliance with the extant provisions, including law and procedures relating to GST & Customs.” Keeping in view of the aforesaid counter-affidavit, the admitted position is that the Circular No.14/2018-Customs dated 04th June, 2018 is neither clarificatory nor it determines the eligibility of allowing refund of Input Tax Credit on exports. In any event, the new procedure cannot be made applicable from a retrospective date. Consequently, the impugned orders passed by respondent are set aside and the matter is remanded back to the Original Adjudicating Authority.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
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