Petitioner | Numinous Impex (I) Pvt. Ltd. |
Respondent | The Commissioner of Customs & The Assistant Commissioner of Customs-(Drawback) |
Decision By | Madras High Court |
Date Of Order Or Judgement | 08-April-2022
|
Citation No. | W.P.(MD) No.20468 of 2021 2022 (4) GSTPanacea 34 HC Madras |
Hon’ble Judge | Justice C. Saravanan |
Decision | In Favour of Assesseex |
Refund of IGST-Refund of the input tax credit (ITC) of IGST cannot be denied, merely because the petitioner has claimed duty drawback under the provisions of Customs and Central Excise Duties and Service Tax Drawback Rules, 2017.
Refund of IGST -Facts of the Case
Refund of IGST-Writ Petition has been filed for a direction to the respondents to settle the pending refund claims of the petitioner on the exports.
The petitioner had exported consignments of goods classifiable under Customs Heading No.8483-40-00 of the Customs Tariff Act 1975 and claimed duty drawback under Section 75 of the Customs Act, 1962. Additionally, the petitioner claimed refund of input tax credit availed on the input and input services used in the export goods.
The petitioner that the exports effected by the petitioner are “zero rated supply” within the meaning of Section 16 of the Integrated Goods and Services Tax Act, 2017 and therefore, the petitioner is entitled to refund of unutilized input tax credit under Section 16(3)(a) of the Integrated Goods and Services Tax Act, 2017.
Since on the same export, the petitioner has claimed duty drawback under the provisions of Customs and Central Excise Duties and Service Tax Drawback Rules, 2017 read with relevant Notification issued under Section 75 of the Customs Act, 1962, the refund of unutilized input tax credit under Section 16(3)(a) of the Integrated Goods and Services Tax Act, 2017 is being denied.
Argument Before the Court
Refund of IGST-The point for consideration in the present writ petition is
“whether exports made without payment of IGST under bond on which, duty drawback is claimed under the provisions of the Customs and Central Excise Duties and Service Tax Drawback Rules, 2017, (formerly 1995) would entitle such an exporter, the benefit of refund of input tax credit under sub-Section (3) of Rule 16 of the IGST Act 2017 r/w 54 of the CGST Act, 2017 read with the Rules made thereunder?”.
Madras High Court Held
Refund of IGST-Refund of the input tax credit under Section 16(3) of Integrated Goods and Services Tax Act, 2017 r/w Section 54 of the Central Goods and Services Tax Act, 2017 and Rules 89 and 96 of Central Goods and Services Tax Rules, 2017 cannot be denied, merely because the petitioner has claimed duty drawback under the provisions of Customs and Central Excise Duties and Service Tax Drawback Rules, 2017.
There are two rates of All Industry Duty Drawback (AIR) under the Notification No.131/2016-Cus (N.T) dated 31.10.2016 namely:-
- where input tax credit is availed.
- where no input tax credit is availed.
As far as the goods falling under Customs Heading No. 8483-40-00 of the Customs Tariff Act 1975 are concerned, the rate of duty for goods both covered under these two Columns is only at 2%.
In this case, admittedly, the petitioner is entitled to duty drawback at 2% irrespective of the fact that whether the petitioner has availed input tax credit under the provisions of the Central Goods and Services Tax Act, 2017 or under the provisions of the State Goods and Services Tax Act, 2017.
Therefore, there is no merit in the stand of the respondents that the petitioner is not entitled for the relief. Paragraph No.2.5 of the Circular No.37/2018-Cus., dated 09.10.2018.
The respondents are directed to scrutinize the refund claims filed by the petitioner under Section 16(3) of the Integrated Good and Services Tax Act, 2017 read with Section 54 of the Central Goods and Services Tax Act, 2017 and Rule 89 of the Central Goods and Services Tax Rules, 2017 along with interest within a period of three months from the date of receipt of a copy of this order.
Downlaod PDF
Numinous-Impex-I-Pvt.-Ltd.
For Reference Visit:
Madras High Court