A recent legal case concerning the Central Goods and Services Tax (CGST) refund process.

The Dispute:

• A company (petitioner) claims an IGST refund on exports made under the Advance Authorization (AA) Scheme.
• The authorities (respondents) issued a letter questioning the legitimacy of the refund and are attempting to recover a portion of the claimed amount.
• The petitioner believes this is a coercive attempt to deny them a rightful refund.

Legal Challenge:

• The petitioner has filed a writ petition challenging the following:
  • Actions by the authorities to recover the disputed amount without following proper procedures.
  • The validity of a specific rule (Rule 96 sub-Rule 10 of CGST Rules, 2017) used by the authorities.

Conclusion:

• The court has acknowledged the petitioner's challenge to the rule's validity but needs more time from the government to respond.
• The authorities have agreed to hold off on any coercive actions against the petitioner until the case is resolved.
• The next hearing is scheduled for July 22nd, 2024.

Case Law-Reliance Chemotax Industries Ltd. verus Union Of India

Citation-2024 TAXONATION 1241 (RAJASTHAN)

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