GST / Indirect Tax & Refund of Integrated Tax Paid on Export of Services : HC Explains the Principles

GST / Indirect Tax & Refund of Integrated Tax Paid on Export of Services : HC Explains the Principles

In a recent case, the issue related to refund of Integrated Tax was discussed.

The issue arose in MESSRS ADDWRAP PACKAGING PVT. LTD. & ANR. v. Union of India [2025] GCtR 1277 (Gujarat) where Rule 96 (10) of CGST Rules, 2017 was discussed.

Rule 96 of the CGST Rules falls under Chapter X of Refunds and deals with the refund of Integrated Tax “paid” on goods or services exported out of India. Subrule(1) to Sub-rule(9) prescribes the procedure for filing of the shipping bills, returns and other forms to avail the refund of IGST paid under section 16(3)(b) of the IGST Act.

In this case, challenge was made to vires of Rule 96(10) of the Central/State Goods and Services Tax Rules, 2017 (For short “the CGST Rules”) as substituted by the Central Goods and Services Tax(12th Amendment) Rules, 2018 with effect from 9.10.2018. Prior to its substitution, Sub-rule(10) was substituted by Central Goods and Services Tax 11th Amendment Rules, 2018 with retrospective effect from 23.10.2017 and Central Goods and Services Tax 8th Amendment Rules, 2018 with retrospective effect from 23.10.2017.

It was held that in view of above conspectus of law, it appears that the recommendations of the GST Council to omit Rule 96(10) prospectively would apply to all the pending proceedings and cases. However, the contention that the petitioners have filed these petitions challenging the validity of Rule 96(10) cannot be said to be pending proceedings is without any basis because the petitioners have also challenged the show cause notices as well as orders-in original passed by the respondents by invoking Rule 96(10) for rejecting the refund claims of the petitioners and therefore, it can be said that these petitions are nothing but pending proceedings before the Court which has not achieved finality when the Notification No.20/2024 came into force with effect from 8th October, 2024. 

The Jurisdiction of High Court Explained

The Jurisdiction of High Court Explained 

In a recent decision, important issues concerning A.226 were explained.

It was held in RAIN CII CARBON VIZAG LTD & ANR. v UOI [2025] GCtR 630 (Delhi) that the provisions of clause (2) of Article 226 of the Constitution of India appear to have been engrafted in a language similar or akin to sub section (c) of section 20 of the Code of Civil Procedure, 1908. 

The framers were acutely aware that apart from the territorial jurisdiction conferred upon a competent Civil Court exercising its powers in accordance with sub section (a) and (b) of section 20 of Code, 1908, it would be necessary to confer jurisdiction to such other places where a “cause of action” “wholly or in part” has arisen. The words, “cause of action”, for the purpose of clause (2) of Article 226 of the Constitution of India, for all intent and purport, may be ascribed similar meaning and effect as envisaged under sub section (c) of section 20 of the Code, 1908

The phraseology used in sub section (c) of section 20 of the Code, 1908 and clause (2) of Article 226 of the Constitution of India, being pari materia, the import and purport of sub section (c) of section 20 of the Code, 1908 may be made applicable to the writ proceedings also.What constitutes a “cause of action” and whether it has arisen “wholly or in part” therefore, has to be necessarily examined by the Court where such an issue emerges after evaluating the necessary and relevant facts arising therein.

Appointment of Judges : Some Legal Issues

 Appointment of Judges : Some Legal Issues 

An interesting judgment was passed by Hon'ble Supreme Court on 24 January 1975. 

On the issue of appointment of Judges, it has been commented at page 14 of High Court of Punjab and Haryana v State of Haryana [1975] GCtR 2828 (SC) thus : - 

"When persons are appointed to be District Judges or persons are promoted to be District Judges the act of appointment as well as the act of promotion is complete and nothing more remains to be done. Confirmation of an officer on successful completion of his period of probation is neither a fresh appointment nor completion of appointment. Such a meaning of confirmation would make appointment a continuing process till confirmation. Confirmation of District Judges is vested in the control of the High Court for the reason that if after the appointment of District Judges the Governor will retain control over District Judges ’Until confirmation there will be dual control of District Judges. The High Court in that case would have control over ,confirmed District Judges and the Governor would have control over unconfirmed District Judges. That is not Article 235."

 

The law is now clear that fixing criteria not in accordance with Constitutional requirements must be struck down.  

 

Written by 

Vishal

Delhi

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