Section 16 of the IGST Act — Refund of IGST -– The petitioner prayed for directing the Respondents to grant refund of IGST paid on exports after deducting the differential amount of duty drawback for the period from July to September 2017 along with appropriate interest on such refund amount. The applicants engaged in the business of trading of cotton yarn and cotton waste. The applicant obtained LUT for making exports without payment of tax under Section 16 of the IGST Act. From July, 2017 onwards till the LUT was obtained, they had exported goods on payment of the IGST and under a misconception of law, they selected the option of export without payment of tax while filing the shipping bills at the relevant point of time, though had no LUT and simultaneously claimed higher rate of duty drawback under the Customs Act, 1962. The IGST was paid on the exports along with the returns filed in the Form GSTR-3B. While filing the S/B, the amount of the IGST paid was shown as ‘Nil’, therefore, the customs authorities denied to grant refund of the IGST paid on exports. The applicants relied the decision of this Court in the case of M/s Amit Cotton Industries v/s Principal Commissioner of Customs [Special Civil Application No.20126 of 2018, decided on 27th June, 2019].
Held that:- The Hon’ble High Court allowed the petition and directed the respondent to immediately sanction the refund of the IGST paid with 7% simple interest from the date of shipping bill. Further, directed that the refund shall be granted after deducting the differential amount of the duty drawback for the period between July and September, 2017.—Real Prince Spintex Pvt. Ltd. Vs. Union of India [2020] 22 TAXLOK.COM 033 (Gujarat)