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Refund of IGST cannot be denied on account of inadvertent error

Refund — Section 54 of the CGST Act, 2017 —The petitioner filed a writ of mandamus to direct the respondent to settle and release the pending refund of IGST amount paid on the Shipping Bills. The petitioner submitted that they are regular exporters of Polished Granite Slabs and have exported the same on payment of IGST. As per Rule 96A, Shipping Bills filed by an exporter of goods shall be deemed to be an application for refund of IGST tax paid. The said refund was pending for the reason that the petitioner has availed drawback at higher side i.e., Composite Rate. The respondent submitted that the petitioner wrongly mentioned the drawback code, as such, refund could not be processed by the respondents. The petitioner submitted that this was an inadvertent error. The CBIC has issued Circular No.8/2018-Cus dated 23.03.2018 for rectification of mistakes and similar facility can be extended to the petitioner as in the case of Circular No.08/2018, dated 23.03.2018.
Held that:- The Hon’ble High Court allowed the petition and directed the respondents to refund the undisputed IGST amount payable to the petitioner for the Shipping Bill within a period of eight weeks.—VSG Exports Pvt., Ltd. Vs The Commissioner of Customs, The Assistant Commissioner Of Customs (Drawback Section) [2019] 11 TAXLOK.COM 112 (Madras)