HC Upheld Refund Since Circular Restricting IGST Refund Where Drawback is Claimed Cannot Override Rule 96

Case Details: Assistant Commissioner of Customs vs. Modern India Products - [2025] 172 taxmann.com 524 (Madras)

Judiciary and Counsel Details

• G.R. Swaminathan & M. Jothiraman, JJ.
• R. Nandakumar, for the Petitioner.
• N. Sudalai Muthu, for the Respondent.

Facts of the Case

The assessee, an exporter, sought a refund of IGST paid on exports under Section 16 of the IGST Act, 2017, and Section 54 of the CGST Act, 2017, read with Rule 96 of the CGST Rules, 2017. As the refund was not processed, the assessee filed a writ petition, which the Single Judge allowed. The revenue appealed, citing Circular No. 37/2018–Customs, dated 09-10-2018, which barred IGST refunds where duty drawback was claimed.

High Court Held

The Hon’ble High Court held that the said circular could not override Rule 96 of the CGST Rules. As multiple High Courts had upheld this position, the Single Judge’s order granting relief was not to be disturbed. The appeal was dismissed, affirming the assessee’s right to an IGST refund despite claiming duty drawback.

List of Cases Reviewed

• Amit Cotton Industries v. Principal Commissioner of Customs, 2019 (7) TMI 472
• Precot Meridian Ltd. v. Commissioner of Customs & Anr. 2020 (1)TMI 90, relied on.