Circular No. 14/2018 - Customs dated 04th June 2018 is neither clarificatory nor it determines the eligibility of allowing refund of Input Tax Credit on exports.

Last updated: 12 January 2021

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Quick Summary

The Delhi High Court has ruled on a case concerning the refund of Input Tax Credit (ITC) for exports made through Foreign Post Offices (FPOs). The petitioner sought a refund for exports made in August and September 2017, arguing they were zero-rated supplies. However, the refund was denied based on Circular No. 14/2018-Customs, which stated that the facility for IGST refund or Letter of Undertaking (LUT) discharge for FPO exports was not retrospective. The court's decision clarifies that this circular does not determine eligibility for past periods.

Court :
Delhi High Court)

Brief :
The petitioner by way of the present writ petition challenges the order dated 01st June, 2020 passed by the Appellate Authority whereby the respondent have denied refund due to the petitioner in spite of the fact that the petitioner had made exports of goods outside India and such exports are regarded as zero rated supplies under Section 16 of the Integrated Goods and Services Tax Act, 2017 (for short ‘IGST Act’) on which the petitioner was entitled to refund of input tax credit under Section 54(3) of the Central Goods and Services Tax Act, 2017 (for short ‘CGST Act’). The relevant portion of the impugned order reads as under:

Citation :
W.P. (C) 3917/2020

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