Case Law Details
Awadkrupa Plastomech Pvt. Ltd. Vs Union of India (Gujarat High Court)
It appears from the materials on record that the writ applicant wants the respondent authorities to sanction the refund of Integrated Goods and Service Tax [herein after referred to as the ‘IGST’] paid in respect of the goods exported i.e. ‘Zero Rated Supplies’ vide the shipping Bill No.7452830, dated 19/07/2017. It is the case of the writ applicant that the respondents authorities have illegally withhold the refund of the IGST referred to above. The claim of the writ applicant came to be rejected under Section54 of the Central Goods and Service Tax Act, 2017 [herein after referred to as the ‘CGST Act’] read with Section 16 of the Integrated Goods and Service Tax Act, 2017. It appears from the materials on record that such claim came to be declined on the ground that the writapplicant had claimed higher duty drawback. According to the writ applicant, there is no legal embargo to avail the drawback at higher rate on one hand and availing refund of the IGST paid with regard to the ‘Zero Rated Supply’ i.e. the goods exported out of India on the other.
Held by High Court
Circular No. 37/2018-Customs, dated 09/10/2018 referred to above by the Competent Authority would apply only to the cases, where the exporters have availed the option to take drawback at the higher rate in place of the IGST refund out of their own volition. In the instant case, the assessee had never availed the option to take drawback at higher rate in place of the IGST refund. In such circumstances, the Circular is not applicable to the facts of the present case.
Even as per the Condition No.7 of the Notification 131/2016–Cus. (N.T.) dated 31/10/2016, if the rate indicated in the columns (4) i.e. higher duty drawback and (6) i.e. lower duty drawback are the same, then it shall necessarily imply that the same pertains only to the Customs component and is available irrespective of whether the exporter has availed of the CENVET facility or not.
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