Can a petitioner who has paid IGST, claim a refund on the ground of zero-rated supply?

Last updated: 10 March 2021

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Quick Summary

This judgement from the Karnataka High Court addresses whether a business can claim a refund of Integrated Goods and Services Tax (IGST) if they have already paid it, on the grounds that the supply was zero-rated. The court considered multiple petitions from the same assessee concerning the rejection of their refund claims for various periods. The core issue was the eligibility for a refund in cases of zero-rated supplies where IGST had been remitted.

Court :
Karnataka High Court

Brief :
The petitioner has sought for issuance of writ of certiorari to quash the refund rejection orders. Noticing that W.P.No.13633/2020 relates to rejection of refund order as regards October, 2018;

Citation :
Writ Petition No. 13633/2020

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 24TH DAY OF FEBRUARY, 2021
BEFORE
THE HON'BLE MR.JUSTICE S. SUNIL DUTT YADAV

WRIT PETITION No.13633/2020 (T-RES)
C/W
WRIT PETITION No.3384/2021,
WRIT PETITION No.12555/2020

IN W.P. NO.13633/2020

BETWEEN:

M/S. ASIATIC CLINICAL RESEARCH PVT. LTD.
169/53, 14TH MAIN ROAD
IST BLOCK EAST
JAYANAGAR
BANGALORE - 560 001
REPRESENTED BY V. SRINIVASAN
DIRECTOR/GENERAL MANAGER. ... PETITIONER
(BY SRI. RAVI RAGHAVAN, ADVOCATE FOR
SMT. SUDESHNA BANERJEE, ADVOCATE)

AND:

1. UNION OF INDIA
REPRESENTED BY ITS UNDER SECRETARY
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
NORTH BLOCK
NEW DELHI - 110 001.

2. COMMISSIONER OF CENTRAL TAX
BANGALORE SOUTH
1, CK JAFFER SHARIEF RD
VASANTH NAGAR
BENGALURU - 560 001.

3. THE ASST. COMMISSIONER OF CENTRAL TAXES
SOUTH DIVISION-3
2ND FLOOR,
TTMC/BMTC BUILDING
KANAKAPURA ROAD
BANASHANKARI
BANGALORE - 560 070. ... RESPONDENTS

(BY SRI JEEVAN J. NEERALGI, ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF
THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE
REFUND REJECTION ORDER DATED 12.11.2020 PASSED BY R-3
FOR THE PERIOD OCTOBER 2018 AT ANNEXURE-A AND ETC.

IN W.P. NO.3384/2021

BETWEEN:

M/S. ASIATIC CLINICAL RESEARCH PVT. LTD.
169/53, 14TH MAIN ROAD
IST BLOCK EAST
JAYANAGAR
BANGALORE - 560 001
REPRESENTED BY V. SRINIVASAN
DIRECTOR/GENERAL MANAGER. ... PETITIONER

(BY SRI. RAVI RAGHAVAN, ADVOCATE FOR
SMT. SUDESHNA BANERJEE, ADVOCATE)

ORDER

The petitioner has sought for issuance of writ of certiorari to quash the refund rejection orders. Noticing that W.P.No.13633/2020 relates to rejection of refund order as regards October, 2018; W.P.No.12555/2020 relates to rejection of refund orders for the months of April, 2018 to September, 2018; W.P.No.3384/2021 relates to rejection of refund orders for the months of November, 2018 and December, 2018 and noticing that the rejection of refund orders relates to the same assessee and the similar contentions are advanced as regards to setting aside of the impugned orders, all the writ petitions are taken up together and disposed off by this common order.

To know more in details find the attachemnt file

FAQ :

The main issue was whether a petitioner who had paid IGST could claim a refund on the basis of making a zero-rated supply.

The petitioner was M/s. Asiatic Clinical Research Pvt. Ltd.

The respondents were the Union of India, the Commissioner of Central Tax, Bangalore South, and the Assistant Commissioner of Central Taxes, South Division-3.

The Integrated Goods and Services Tax (IGST) was the subject of the refund claims.

The petitioner sought to quash the orders that had rejected their refund claims.