Akay Flavours And Aromatics Pvt. Ltd VS Central Board Of Indirect Taxes And Customs

The case concerns the petitioner’s request to the court for specific legal actions related to their export refund process and the inclusion of corrected details in the Electronic Data Interchange (EDI) system. The prayers outlined in the writ petition include:

1. Mandamus for Correction in EDI System: The petitioner seeks a writ of mandamus or any other suitable order to direct the respondents to include the corrected details of Exhibits P6 to P9, as supplemented by Exhibits P11 and P12, into the EDI system. This inclusion is crucial for the petitioner to process their refund.

2. Refund of IGST with Interest: The petitioner requests a writ of mandamus or another appropriate writ directing the respondents to refund the Integrated Goods and Services Tax (IGST) paid, with interest calculated from the date indicated in Exhibits P6 to P10 shipping bills.

3. Additional Appropriate Orders: The petitioner asks the court to issue any other writ or direction deemed fit and necessary based on the circumstances of the case.

4. Award of Costs: The petitioner seeks an order for the respondents to bear the costs of these proceedings.

During the hearing, Sri. John Varghese, the counsel for the petitioner, and Sri. Thomas Mathew Nellimoottil, the Central Government Counsel for the respondents, presented their arguments. The Central Government Counsel informed the court that the Additional 7th respondent, who is the Assistant Commissioner of Central Tax & Central Excise, Perumbavoor Division, has provided written instructions. These instructions were communicated through letter No.C.No.VIII/48/218/2019 CCO-V, dated [specific date not provided], indicating the steps or decisions taken in response to the petitioner’s demands.

The court’s next steps and considerations will be based on these submissions and the specifics of the instructions provided by the Assistant Commissioner.

The prayers in the petition (W.P.(C.)) involve several requests to the court. Firstly, the petitioner seeks a writ of mandamus or any suitable writ directing the respondents to update the EDI system with the corrected details from Exhibits P6 to P9 using Exhibits P11 and P12. This update is crucial for the petitioner to receive a refund. Secondly, the petitioner requests a writ mandating the respondents to refund the IGST paid with interest from the dates indicated in Exhibits P6 to P10. Additionally, the petitioner asks the court to issue any other orders deemed appropriate for the case’s circumstances and to award costs to the petitioner for the proceedings.

During the hearing, counsel for the petitioner, Sri. John Varghese, and the Central Government Counsel, Sri. Thomas Mathew Nellimoottil, presented their arguments. The Central Government Counsel provided information based on instructions from the Addl. 7th respondent, the Assistant Commissioner of Central Tax & Central Excise, Perumbavoor Division. The Assistant Commissioner’s letter, dated 08.01.2020, clarified that the Directorate General of Systems and Data Management, in a communication dated 06.01.2020, confirmed that refunds could be processed through an officer interface option available in ICES. This decision was made following the petitioner’s amendments in the GST returns reflecting the IGST amounts. The Central Government Counsel also referenced the Central Board of Indirect Taxes and Customs Circular No.08/2018-Customs from 23.03.2018 and ICES Advisory No.22/2018 dated 24.05.2018 for procedural details on handling such refunds.

The petition in the case described above seeks the following actions from the court:

1. Mandamus or Other Direction for Refund Processing: The petitioner requests a writ of mandamus or another appropriate order to direct the respondents to incorporate the corrected details from Exhibits P6 to P9, as amended by Exhibits P11 and P12, into the EDI system. This action is needed to facilitate the petitioner’s refund process.

2. Refund of IGST with Interest: The petitioner also seeks a writ directing the respondents to refund the IGST paid, including interest from the date of the shipping bills (Exhibits P6 to P10), as soon as possible.

3. Additional Appropriate Directions: The petitioner requests the court to issue any other appropriate writ, order, or direction deemed fit and necessary based on the facts and circumstances of the case.

4. Award of Costs: The petitioner asks for the costs of the proceedings to be awarded to them.

During the hearing, the court heard arguments from Sri. John Varghese, counsel for the petitioner, and Sri. Thomas Mathew Nellimoottil, counsel for the respondents, including an additional respondent, the Assistant Commissioner of Central Tax & Central Excise, Perumbavoor Division.

Sri. Thomas Mathew Nellimoottil, representing the respondents, presented a written submission dated 08.01.2020 from the Assistant Commissioner’s office. This letter clarified that, following the petitioner’s amendments to the GST returns to include IGST amounts, refunds could be processed using the officer interface option in the Indian Customs Electronic System (ICES). The letter referred to the Central Board of Indirect Taxes and Customs’ Circular No.08/2018-Customs and subsequent ICES Advisory No.22/2018, which outline the procedures for such refunds.

The letter detailed that the Directorate General of Systems and Data Management confirmed that the refunds can be processed as per the office interface procedures specified. The clarification indicated that necessary actions for sanctioning the IGST refunds could be undertaken by the concerned officers following the established guidelines and procedural details.

The court’s deliberation will likely focus on ensuring the proper integration of the amended details into the EDI system and the prompt processing of the IGST refund as per the established procedures. The outcome will hinge on the interpretation and application of the relevant regulations and the proper fulfillment of the procedural requirements stated by the Directorate General of Systems and Data Management.

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