GST DAILY – 473 : Department was directed to process refund as circular can’t restrict GST refund for exporters claiming higher duty drawback: HC

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THE HON’BLE MADRAS HIGH COURT IN THE CASE OF Avian International V/s Assistant Commissioner of Customs, Tuticorin

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, decided on 21-2-2025

👉 Issue:-

✔️ Can Department restrict GST refund for exporters claiming higher duty drawback?

👉 The Hon’ble High Court Judgement:-

✔️ Where petitioner-assessee challenged order passed by respondent-department that refused to process requested refund of IGST falling under Zero rated supply, further, in M/s.Amit Cotton Industries Through Partner, Vs. Principal Commissioner of Customs, it was held that Circular No. 37/2018-Customs, dated 09.10.2018, restricting IGST refunds for exporters who had claimed a higher rate of duty drawback, could not prevail over Rule 96, therefore, following aforesaid precedent, respondent-department was directed to refund impugned amount with applicable interest to petitioner-assessee within given time.

Section 54 read with Rule 96 of Central Goods and Services Tax, 2017 & Section 16 of Integrated Goods and Services Tax Act, 2017.