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Case Law Details

Case Name : Sunlight Cable Industries Vs The Commissioner of Customs NS II And 2 Ors. (Bombay High Court)
Appeal Number : Writ Petition No. 284 of 2021
Date of Judgement/Order : 27/06/2023
Related Assessment Year :
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Sunlight Cable Industries Vs The Commissioner of Customs NS II And 2 Ors. (Bombay High Court)

In the case of Sunlight Cable Industries vs. The Commissioner of Customs NS II And 2 Ors., the Hon’ble High Court of Bombay has ruled in favor of the petitioner, allowing the refund of Integrated Goods and Services Tax (IGST) paid on exported goods. The court also directed the refund to be made with interest at a rate of 7%. This article provides an analysis of the court’s decision and its implications for the parties involved.

Analysis: The petitioner, an exporter of cables, had inadvertently made errors in filing returns, mentioning incorrect invoice and shipping bill details. However, the petitioner filed a revised return and an amendment order was issued by the customs to correct the error. Despite these corrections, the refund of IGST paid on the exports was denied by the authorities, stating that the petitioner had availed a higher drawback and was therefore ineligible for the refund.

The High Court examined the relevant provisions of the IGST Act and CGST Act, particularly Section 54, which provides for refund on zero-rated supplies. It held that the petitioner’s case fell within the scope of zero-rated supplies and, therefore, the refund could not be denied. The court also noted that there was no evidence presented by the revenue authorities to establish that the petitioner had availed a double benefit.

In reaching its decision, the High Court relied on earlier judgments, including the Gujarat Nippon Case and the Amit Cotton Case, both of which supported the petitioner’s position. These judgments emphasized that when an exporter does not claim a higher duty drawback, they are entitled to the IGST refund.

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