Reliance Chemotax Industries Ltd. Vs Union of India (Rajasthan High Court)
Department cannot take Coercive Action unless a SCN is issued w.r.t Claim of IGST Refund on Exports under Advance Authorization Scheme
The Hon’ble Rajasthan High Court in Reliance Chemotax Industries Ltd. v. Union of India [Civil Writ Petition No. 6961 of 2023 dated May 13, 2024] has directed the Revenue not to take coercive measures against the Petitioner w.r.t Recovery pertaining to the wrong claim of IGST Refund as the vires of Rule 96(10) have been challenged by the Petitioner and due statutory process viz. issue of Show Cause Notice (“SCN”) was not followed by the Revenue.
Facts:
M/s. Reliance Chemotax Industries Ltd. (“the Petitioner”) is aggrieved by the fact that the Respondents were trying to coercively recover part of the amount of IGST Refund on Exports made under the Advance Authorization Scheme by terming it as an illegitimate refund scheme.
Therefore, the Petitioner has preferred the present Writ Petition and has also challenged the vires of Rule 96(10) of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”)
Issue:
Whether coercive recovery measures can be employed by the Revenue Department without the issuance of SCN?
Held:
