M/S INDIA Agro Exports Private Limited vs. Commissioner /Addln. Commissioner Of Central Tax - Karnataka High Court, 09 December 2025

Cause title — parties, addresses and appearances

- 1 - HC-KAR NC: 2025:KHC:52372 WP No. 20792 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.20792 OF 2021 (T-RES) BETWEEN: M/S INDIA AGRO EXPORTS PRIVATE LIMITED SY.NO.471AA AND 48/1, YEDUMUDU VILLAGE, HORHALLI HOBLI, KANAKAPURA TALUK BANGALORE – 562 112 REPRESENTED BY ITS DIRECTOR MR. PRATHAM R. SHAH, AGED 32 YEARS, # 21, SOUTH MADA STREET SRINAGAR COLONY, SAIDAPET CHENNAI 600015 …PETITIONER (BY SRI. P B HARISH, ADVOCATE) AND: 1. COMMISSIONER / ADDLN. COMMISSIONER OF CENTRAL TAX BENGALURU WEST COMMISSIONERATE 1ST FLOOR, BMTC BUS COMPLEX BANASHANKARI BANGALORE – 560 070 2. DEPUTY COMMISSIONER OF CUSTOMS IGST REFUND INLAND CONTAINER DEPOT, WHITEFIELD BENGALURU 560 066. 3. JOINT COMMISSIONER OF CUSTOMS IGST REFUND INLAND CONTAINER DEPOT WHITEFIELD BENGALURU 560 066. 4. DIRECTORATE GENERAL OF FOREIGN TRADE 6TH FLOOR, C AND E WING 5TH BLOCK, KENDRIYA SADAN 17TH MAIN ROAD, BENGALURU – 560 034. Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:52372 WP No. 20792 of 2021 5. THE UNION OF INDIA THROUGH ITS REVENUE SECRETARY DEPARTMENT OF REVENUE, MINISTRY OF FINANCE 128-A/NORTH BLOCK NEW DELHI 110001 …RESPONDENTS (BY SRI. AKASH B. SHETTY, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUITON OF INDIA PRAYING TO DECLARE THAT THE CUSTOMS AUTHORITY IS THE PROPER OFFICER TO GRANT THE SANCTION / REFUND AND FOLLOW THE DUE PROCEDURE OF LAW IN TERMS OF RULE 96(3) AND DISBURSE THE SANCTIONED REFUND IN THE INTEREST OF JUSTICE AND IN TERMS OF THE PROVISIONS OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017, KARNATAKA GOODS AND SERVICES TAX ACT, 2017 AND INTEGRATED GOODS AND SERVICES ACT, 2017 AND ETC. THIS PETITION, COMING ON FOR FINAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER In this petition, petitioner seeks the following reliefs:

“i. Issue writ of declaration or in the nature of a mandamus or any other appropriate writ, order or direction holding and declaring that the customs authority is the proper officer to grant the sanction the refund and follow the due procedure of law in terms of Rule 96(3) and disburse the sanctioned refund in the Interest of justice and in terms of the provisions of the Central Goods and Services Tax Act, 2017, Karnataka Goods & Services Tax Act, 2017 and Integrated Goods & Services Act, 2017. HC-KAR NC: 2025:KHC:52372 ii. Issue a Writ of mandamus or any other appropriate writ or direction to the Respondent No.2 directing to disburse 90% of the provisional refund in terms of Section 54(6) of CGST Act 2017 read with Rule 91 of the CGST Rules 2017 in the interest of Justice.

iii. Issue a Writ of Certiorari or a writ in the nature of Certiorari or any other writ, order or direction under Article 226 of the Constitution of India calling for the records pertaining to the Petitioner's case and after going into the validity and legality thereof to quash the suspension of IEC and set aside the Impugned letters C.No:VIII/20/02/2020/ICD IGST P.F/4507/21 dated 08.02- 2021 of Respondent No.2 (Vide Annexure-A) and C.NO: VIII/20/02/2020/ICD IGST PF/4626/2021 dated: 05.03.2021 of Respondent No.3 (vide Annexure-B) in the interest of justice and equity.

iv. To Issue order(s), direction(s), writ(s) or any other relief(s) as this Hon'ble Court deems fit and proper in the facts and circumstances of the case and in the interest of justice;

v. To award Costs of and incidental to this application be paid by the Respondents;

And for this act of kindness, the Petitioner shall, as in duty bound, ever pray.”

Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. HC-KAR NC: 2025:KHC:52372

In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on record, learned counsel for the petitioner invited my attention to the order of this Court in the case of M/s Hikal Limited Vs. Union of India and others – W.P.No.15251/2020 dated 09.12.2025, in order to contend that the present petition deserves to be allowed and disposed of in terms of the said order.

Per contra, learned counsel for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed.

As rightly contended by the learned counsel for the petitioner the present petition is directly and squarely covered by the decision of a Co-ordinate Bench of this Court in the case of M/s – W.P.No.15251/2020 dated 09.12.2025, the operative portion of which reads as under:

11.

In view of the aforesaid facts and circumstances and striking down of Rule 96(10) of the CGST Act and the judgments of the Kerala High Court and other High Courts including Bombay High Court in the petitioner’s own case coupled with the fact that respondents themselves have HC-KAR NC: 2025:KHC:52372 omitted Rule 96(10) vide Notification dated 08.10.2024, I am of the considered opinion that the impugned Show Cause Notice and all further proceedings pursuant thereto deserves to be quashed.

12.

In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned Show Cause Notice at Annexure – R dated 07.10.2020 issued by respondent No.5 and all further proceedings pursuant thereto are hereby quashed. (iii) Respondent authorities are directed to refund IGST amounting to Rs.75,55,123/- along with applicable interest back to the petitioner as expeditiously as possible and at any rate within a period of three months from the date of receipt of a copy of this order.”

The aforesaid order is applicable to the facts and circumstances of the instant case and consequently, the present petition also deserves to be disposed of in terms of the judgment of this Court in M/s Hikal Limited’s case supra.

In the result, I pass the following: ORDER (i) The petition is allowed and disposed of in terms of the decision of this Court in the case of M/s Hikal HC-KAR NC: 2025:KHC:52372 Limited Vs. Union of India and others – W.P.No.15251/2020 dated 09.12.2025. (ii) The impugned Letters at Annexure – A and Annexure - B dated 08.02.2021 and 05.03.2021 issued by respondents and all further proceedings pursuant thereto are hereby quashed.

(iii) Respondent authorities are directed to refund the amount, if any, payable to the petitioner along with applicable interest back to the petitioner as expeditiously as possible and at any rate within a period of three months from the date of receipt of a copy of this order. (S.R.KRISHNA KUMAR) JUDGE