M/S Dinesh Printers INDIA PVT.LTD. vs. The Central Board Of Indirect Taxes And Customs
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Before: SHRI. DINESH KUNDAPUR
TO DORECT THE RESPONDENTS TO PROCESS THEIR REFUND CLAIM IGST AMOUNT OF RS.1,09,13,672/- IN RESPECT OF THE GOODS EXPORTED FOR THE MONTH OF MAY AND JUNE 2022 IN TERMS OF 96(1) OF CGST/KGST, 2017 AND SANCTION REFUND IN TERMS OF RULE 89 OF CGST/KGST RULES, 2017 R/W 96(5C) OF CGST/KGST, 2017 AND PASS SUCH OTHER INTERIM ORDER AS THIS HONBLE COURT MAY DEEM FIT IN THE FACTS AND CIRCUMSTANCE OF THE CASE.
THIS PETITION, COMING ON FOR FINAL HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: NC: 2023:KHC:21413 ORDER
The petitioner has sought for issuance of mandamus to direct first and second respondents to revoke the tagging/naming the petitioner as “risky exporter”. The petitioner has also sought for issuance of order in the nature of mandamus to direct the respondents to sanction IGST refund of Rs.1,09,13,672/- claimed in respect of the goods exported for the month of May and June, 2022 in terms of 96(1) CGST/KGST, 2017. 2. The petitioner submits that his refund has been withheld in light of the petitioner having been classified as “Risky Exporter”. It is pointed out that in terms of Annexure-A, Standard Operating Procedure to be followed which has been circulated to all the concerned authorities. Procedure has been laid down as regards the manner of consideration. It is submitted that despite alert having been issued in the month of June, 2022 in the Customs Portal, till date, despite the procedure prescribed in the Standard Operating Procedure dated 23.01.2020, the NC: 2023:KHC:21413 verification is not completed and alert continued which has prejudiced the interest of the petitioner.
Heard both sides.
The only point for consideration on the admitted fact is that verification was required to be completed in terms of Circular No.131/01/2020-GST. The relevant paragraphs of the said Circular reads as follows:
While the verifications are caused to mitigate risk, it is necessary that genuine exporters do not face any hardship. In this context it is advised that exporters whose scrolls have been kept in abeyance for verification would be informed at the earliest possible either by the juri ictional CGST or by Customs. To expedite the verification, the exporters on being informed in this regard or on their own volition should fill in information in the format attached as Annexure-‘A’ to this Circular and submit the same to their juri ictional CGST authorities for verification by them. If required, the juri ictional authority may seek further additional information for verification. However, the juri ictional authorities must adhere to timelines prescribed for verification. NC: 2023:KHC:21413
1 Verification shall be completed by juri iction CGST office within 14 working days of furnishing of information in proforma by the exporter. If the verification is not completed within this period, the juri iction officer will bring it the notice of a nodal cell to be constituted in the juri ictional Pr.Chief Commissioner/Chief Commissioner Office.
2 After a period of 14 working days from the date of submission of details in the prescribed format, the exporter may also escalate the matter to the Juri ictional Pr.Chief Commissioner/Chief Commissioner of Central Tax by sending an email to the Chief Commissioner concerned (email IDs of juri ictional Chief Commissioners are in Annexure-B).
3 The Juri ictional Pr.Chief Commissioner/ Chief Commissioner of Central Tax should take appropriate action to get the verification completed within next 7 working days.”
In light of the admitted fact that process of verification is not completed, the authorities to strictly adhere to the time frame stipulated in the Circular at Annexure-A. On the lapse of three weeks from today in the event, verification is not completed in terms of procedure at Annexure-A, alert and E.O. remark NC: 2023:KHC:21413 classifying exporter as “risky” for grant of refund would stand stayed, which would not come in the way of verification as per law which must be completed within a period of one month thereafter. Accordingly, the petition is disposed off. JUDGE
MPK List No.: 1 Sl No.: 23
Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.