GST Refund cannot be denied just because Exports figures filled in wrong column of GSTR-3B: HC

The Madras High Court (HC) has observed that the procedures under Rule 96 of CGST Rules, 2017 cannot be applied strictly to deny legitimate export incentives that are available to an exporters. In this connection, a reference was made to the decision of the Hon’ble Supreme Court in the case of Commissioner of Sales Tax, U.P. Vs. Auriya Chamber of Commerce, Allahabad reported in 1986(25) E.L.T.867 (S.C), wherein the Hon’ble Supreme Court held that procedures are nothing but handmaids of justice and not mistress of law. In my view, the procedures prescribed under the aforesaid Rules should not be applied strictly so as to defeat the legitimate export incentives, which an exporter otherwise would have been entitled to but for the technicality involved in the system.

The Assessee M/S.Abi Technologies has filed this writ petition for a Mandamus to direct the respondent to sanction a sum of Rs.24,72,018/- as refund on the exports made by the petitioner during July, 2017, September, 2017 and October, 2017.

It is the specific case of the petitioner that though the petitioner had correctly declared the details in the monthly returns in Form GSTR-1 regarding the exports made by the petitioner on payment of tax by debiting the input tax credit, a mistake was committed by the petitioner in GSTR-3B under Rule 61(5) of the CGST Rules, 2017.

Opposing the prayer, the learned Senior Standing Counsel for the respondent on the other hand submits that the refund would be granted subject to the petitioner giving the correct informations in the returns, namely GSTR-1 and GSTR-3B. It is only the information, which match and invoices, which were uploaded, the refund would be sanctioned. In this connection, the learned Senior Standing Counsel has relied to Rule 96 of the CGST Rules, 2017.

The Bench of Mr. C.Saravanan disposed of this writ petition by directing the respondent to get the data directly from the petitioner and from their counterparts in the customs department. If indeed there was an export and a valid debit of tax by the petitioner on the exports made to foreign buyers, the refund shall be granted.