CGST Rewari recovers Rs.32.71 Crore for Violation of Rule 96(10) restricting Refund Claims

The CGST Rewari Division has effected a revenue recovery of Rs.32.60 crore in cash in the matter of M/s. Hollister Medical Inida Private Limited, Rewari, Haryana, 123501, said a report from the official sources.

During the follow up action on DGARM Report No. 49 issued in DGARM’s Letter No. DGARM/TT/BIA/RTP/2022-NTCP/Dated 19.09.2022 regarding Risk Analysis of IGST Refunds under Violation of Rule 96(10) of CGST Rules, it has been noticed that M/s. Hollister Medical Inida Private Limited, Rewari, Haryana, 123501 was covered in the List Circulated.

A exporter can avail of refund borne on inputs either under LUT (Rules 89 to 94 of the CGST Rules, 2017) or under the IGST route in terms of Rule 96 of the said Rules. However, the said Rule 96, vide sub-clause 10, provides an express debar to IGST refunds in case the exporter has received supplies on which the benefit of notification no. 48/2017-CT dated 01.10.2017 or notification no. 78/2017-Customs or notification no. 79/2017-Customs, bothdated 13.10.2017 has been availed.

As Such, an analysis was carried out on IGST refunds to see whether the saidd Rule 96(10) had been violated. In this regard, as per records available with this division, it has been found that they have availed notifications 78/2017(ibid) during the 09.10.2018 to 31.03.2022 and period violated 96(10) of said rule. Therefore, they were requested to pay the incorrectly availed Refund amount along with applicable interest and penalty under section 73(5)/74(5). A non adversarial persuasive approach to collect the amount was initiated on the assesse. All doubts and apprehensions raised by the assessee were cleared during several rounds of meeting. The party agreed to pay the dues with interest and in terms of the Board’s Circular No. 174/06/2022-GST Dt 06.07.2022.

The assessee has since paid the tax amount of Rs 24,22,85,995/- and Interest Amount of Rs 8,38,11,515/- totaling to Rs 32,60,97,510/- (Thirty Two Crore Sixty Lakh Ninety Seven Thousand Five Hundred and Ten Rupees only) in cash and submitted DRC-03.

The report also commended Commissioner Sophia Martin Joy, Assistant Commissioner Rajesh Kumar, Superintendent Satender Gour, and Inspector Rambali Singh for their diligent efforts in following up and recovering the large sum.

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