Section 16 of the IGST Act, 2017 – Refund - The petitioner prayed for directions to the Respondents to grant refund of IGST paid on goods exported by the Petitioners during the Transitional Period (July-September, 2017) after deducting the differential amount of duty drawback, along with appropriate interest. The petitioner Counsel stated that the cumulative effect of the impugned instruments is to deny refund of IGST on export of goods, in cases where Drawback was claimed by the exporter at the higher rates under column A of the Drawback Schedule prescribed in the said notification. The issue raised is squarely covered by the judgment of this Court in Maxam India Private Limited v. Union of India & Ors. The court observed that the matter in issue is covered by the judgment of Gujarat High Court in M/s Amit Cotton Industries v. Principal Commissioner of Customs, 2019 and Even a Special Leave Petition filed against the said judgment has already been dismissed by the Supreme Court of India on 22nd March, 2021. 

Held that:- The Hon’ble High Court directed the respondent to refund IGST paid on the goods exported by the Petitioners during the transitional period, after deducting the differential amount of duty drawback, if the said differential amount has not already been returned by the petitioner, within twelve weeks along with appropriate interest at the rate of 7%. The Jurisdictional Commissionerates shall be entitled to verify the extent of duty drawback availed by the Petitioners and also whether they have availed duty drawback/CENVAT Credit of Central Excise & Service Tax component in respect of the exports made by them. If any adjustment is to be made, the same shall be done by the Jurisdictional Commissionerate.