Section 16 of the IGST Act, 2017 — Refund —-- The petitioner challenged the order dated 13th July, 2021 passed in Appeal, rejecting the application for refund of unutilized balance of input tax credit U/s 54. It is contended by the Petitioner that the rejection of refund application issued in Form GST RFD-06 on ground that levy of Nil Rate of Tax on exported goods, i.e., “Iron Ore Fines” falling within the fold of Code No.26011142 specified under Second Schedule of the Export Tariff appended to the Customs Tariff Act, 1975 does not qualify for refund of GST paid in view of Clause (i) of Proviso to sub-section (3) of Section 54  is arbitrary and non-application of mind. The respondent counsel has fairly and graciously admitted that the order of rejection of application for refund and upheld by the Appellate Authority is erroneous in view of the order dated 25th November, 2021 passed by this Court in the case of M/s. B.S. Minerals Vrs. State of Odisha & Others. The Court observed that export of “Iron Ore Fines” even though attracts Nil Rate of Tax, in view of Second Schedule to the Customs Tariff Act, 1975, the Petitioner would be entitled to refund on such export transactions. In view of Section 16 of the IGST Act read with Section 54(3), export of goods or services or both is levied with zero-rate. “NIL rate of Tax” falls within the ken of the term “exempt supply” defined under Section 2(47) .

Held that:- The Hon’ble High Court set aside the order dated 13th July, 2021 of the Appellate Authority and remanded the matter to the said Appellate Authority for deciding the appeal afresh, after affording opportunity of hearing to the appellant and dispose of the Appeal taking into consideration the view expressed vide order dated 25th November, 2021 in M/s. B.S. Minerals Vrs. State of Odisha & Others, as expeditiously as possible.