M/S Heavy Metal And Tubes (INDIA) PVT. Limited vs. The Principal Commissioner Of Customs
Original PDF →Facts
M/s Heavy Metal and Tubes (India) Pvt. Limited, a manufacturer of Stainless Steel Seamless Tubes and Pipes, filed a writ petition before the Gujarat High Court. The petitioner had exported goods under zero-rated supplies, paying IGST amounting to Rs. 18,56,113/-. However, the IGST amount was inadvertently omitted from the shipping bills due to a clerical error. The petitioner subsequently sought amendments to the shipping bills to incorporate the IGST details. The grievance was that the respondent authorities, including the Principal Commissioner of Customs and the Deputy Commissioner of Customs at Mundra Port, were not sanctioning the refund of the IGST paid on these exported goods, despite representations made by the petitioner.
Held
The Court observed that the Deputy Commissioner of Customs, Mundra Port, should immediately look into the matter and take an appropriate decision in accordance with the law. The Court disposed of the writ application with a direction to both the Principal Commissioner of Customs, Mundra Port, and the Deputy Commissioner of Customs, Mundra Port, to examine the petitioner's representations and take a decision within a period of four weeks from the date of receiving the order. The decision was to be communicated in writing to the writ-applicant. The Court did not explicitly decide on the entitlement to interest, but the direction to take an appropriate decision implies a consideration of all aspects, including the refund and any consequential claims.
Key Issues
1. Whether the Court has the power to direct the respondent authorities to sanction the refund of IGST paid on zero-rated supplies, considering the petitioner's grievance that the refund is being arbitrarily and illegally withheld? (Question of law) 2. Whether the petitioner is entitled to interest on the withheld IGST refund amount from the date of the shipping bills until the date of payment? (Question of law) Petitioner's Arguments: The petitioner argued that they had fulfilled all conditions for zero-rated supplies and had paid the IGST. They contended that the omission of IGST details in the shipping bills was a clerical error, which was subsequently rectified through amendments approved under Section 149 of the Customs Act, 1962. They further argued that the withholding of the refund was illegal and arbitrary, and they were entitled to interest on the delayed refund. Revenue's Arguments: The judgment does not record any specific arguments made by the respondent authorities.
Sections Cited
Section 149 of the Customs Act, 1962
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA)
By this Writ Application under Article 226 of the Constitution of India, the writ-applicant-a Private Limited Company, engaged in the business of Stainless Steel Seamless Tubes and Pipes falling under the HSN Code 7304, has prayed for the following reliefs: “A. Your Lordship may be pleased to admit this petition; B. Your Lordship may be pleased to allow this petition; C. Your Lordship may be pleased issue writ of mandamus or any other appropriate writ directing the respondent authorities to immediately sanction the refurn of IGST paid in regard to the goods exported i.e. ‘Zero Rated Supplies’ made vide shipping bills mentioned hereinabove; D. Your Lordship may be pleased to C/SCA/3934/2020 ORDER direct the respondent authorities to pay interest @ 9% to the petitioner herein on the amount of refund of IGST mentioned hereinabove from the date of shipping bills up till the date on which the amount of refund is paid to the petitioner herein, as the same is arbitrarily and illegally withheld by the respondnet authorities; E. Your Lordship may be pleased to grant an exparte, ad interim order in favor of the petitioner herein in terms of prayer clause ‘C’ and ‘D’ hereinabove; F. Since
the petitioner
is constrained to approach Your Lordships by way of this petition only because of illegal act of respondent authorities, your Lordship may be pleased to direct the respondent authorities to pay a cost of litigation to the petitioner herein; G. Your Lordship may be pleased to grant such other and further relief/(s) that may be deemed fit and proper in the interest of justice in favor of the Petitioner.”
It is the case of the writ-applicant that the writ-applicant is a manufacturer and is holding the GST Registration. The writ-applicant exported goods under the various invoices of payment of the IGST to the tune of Rs.18,56,113/- from the Mundra Port. However, on account of a clerical error, the amount of the IGST was not mentioned in the shipping bills. In such circumstances, the shipping bills were amended for the purpose of getting the details of the IGST, incorporated in the shipping bills.
The grievance of the writ-applicant is that the respondent-authorities are not responding to the request with regard to the sanction of the refund of C/SCA/3934/2020 ORDER the IGST paid in connection with the goods exported, i.e. “Zero Rated Supplies”.
Mr.Poddar, the learned advocate invited our attention to the representation dated 18.11.2018 addressed to the Deputy Commissioner of Customs, Mundra Port in this regard. The said representation is at page No.36 of the paper book at “Annexure-D”.
Mr.Podar, the learned advocate also invited our attention to the recent representation dated 18.01.2020 addressed to the Principal Commissioner of Customs, Mundra. The said representation is at page No.40 of the paper book at “Annexure-E”.
Mr.Podar, the learned advocate thereafter invited our attention to the letter of Superintendent of Customs (Export), Customs House, Mundra, dated 15th February, 2018, which reads thus: “F.No.VII/48-1510/EXP/AMD/MP&SEZ/17-18
Date:15.02.2018 To, M/s.Heavy Metals and Tubes (India) Pvt. Ltd., 107, Ashwarath Complex, Usmanpura, Ashram Road, Ahmedabad. Gentleman, Subject:-Amendment under sec. 149 of customs act, 1962-Reg. Please refer to your letter dated 18.01.2018 requesting for amendment under Sec 149 of Customs Act, 1962 in Shipping Bill No.7900219 dated C/SCA/3934/2020 ORDER 09.08.2017. In this connection, it is to inform you that Deputy Commissioner of Customs, Custom House, Mundra has approved the amendment on 14.02.2018, against the below said shipping bills Under Section 149 of Customs Act, 1962 as under:- FROM To IGST Payment:- NIL IGST payment: Paid Taxable Value:10311740 IGST Amount:1856113
Yours Sincerely, Superintendnet of Customs (Export) Customs House, Mundra Copy to: Friend Syndicate Clearing Pvt. Ltd., Gandhidham for information only.”
We are of the view that the Deputy Commissioner of Customs, Mundra Port should immediately look into the matter and take an appropriate decision, at the earliest, in accordance with law.
We dispose of this Writ-Application with a direction, to both, the Principal Commissioner of Customs, Mundra Port as well as the Deputy Commissioner of Customs, Mundra Port, to look into the matter and take appropriate decision within a period of four weeks from the date of receipt of the writ of this order. The decision shall be communicated to the writ-applicant in writing. The concerned authorities shall look into the two C/SCA/3934/2020 ORDER representations, which have been referred to above by us.
In view of the above, this Writ-Application stands disposed of. Direct service is permitted. (J. B. PARDIWALA, J) (BHARGAV D. KARIA, J) PALAK
Reproduced from the public record of the Gujarat High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.