Section 16 of the IGST Act, 2017 — Refund – The petitioner sought direction against the respondents for immediate sanction of the refund of the IGST paid in regard to the goods exported zero rated supplies. The respondent withhold the refund of the petitioner on the basis that drawback is claimed at a higher rate. The respondent contended that Circular No. 37 of 2018 dated 09.10.2018 is applicable and the exporters, who had availed the option to take drawback at higher rate in case of IGST refund will need to punch accordingly in the EDI system. The court observed that they are in disagreement with the respondents as not only the petitioner in subsequent correspondence with the respondents has made it completely clear that in the case of these exports the higher duty drawback and the lower duty drawback are the same, the case is covered by the decision of this Court rendered in case of Amit Cotton Industries.

Held that:- The Hon’ble High Court allowed the petition and directed the respondents to sanction the refund towards the IGST alongwith interest, at the rate prescribed under the statute, within a period of six weeks.