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The Petitioner was engaged in the export of eggs and since eggs were chargeable to "Nil" GST, there was no tax liability for their exports. The Petitioner while filing refund application for accumulated ITC, had inadvertently erred by filing under the column 'with payment of tax’ instead of opting for exports 'without payment of tax'. Consequently, the refund was rejected on the ground that the refund was filed under the residuary category. Aggrieved, the Petitioner preferred a Writ before the Madras High Court seeking relief.
The HC observed that the Department never raised any dispute on the refund amount that was rightly entitled to the Petitioner. Further, the Department also conceded that the error was made bona fide and that the Petitioner was entitled to the refund claim as the exports made were zero-rated supply. Accordingly, as the refund was solely rejected due to the inadvertent error, the order was set aside.
Abi Egg Traders [2022-VIL-744-MAD]
GLS Comments:
It is now a settled principle of law that substantial claims cannot be denied merely on acount of procedural lapses or inadvertent errors. This principle was even upheld by the Apex Court in RE:?Mangalore Chemical & Fertilizers Limited [1991 (55) E.L.T. 437 (S.C]. In a similar matter in RE:?Phoenix Contact India Private Limited [2022 (64) GSTL 163 (Del.)],?the Delhi HC had held that mere inadvertent selection of the wrong column for refund claim should not lead to denial of the refund claim.