Supreme Court allows exporters to claim IGST refunds on pending cases

The Court determined that the omission applies to all pending proceedings, allowing exporters to claim refunds without the restrictions previously imposed by that rule.

Who it concerns: Petitioners: M/s Goodluck India Limited & Anr. (and other exporters/assessees in the batch); Respondents: Union of India & Ors.; Bench: Justices J.B. Pardiwala and K. Vinod Chandran.

What the court decided

• Dismissed the Special Leave Petitions (SLPs) filed by the Union of India and the Department.
• Dismissed the SLPs filed by the assessees challenging the validity of Rule 96(10) as infructuous.
• Held that the omission of Rule 96(10) applies to all pending proceedings for refund claims.
• Directed the Registry to send a copy of the order to all High Courts.
• Directed High Court Registries to place related cases before the appropriate benches expeditiously to resolve the litigation.
• Disposed of any pending applications.

Also in the document

• The Court noted that the GST Council's recommendation for prospective application was advisory and not binding.
• The Court relied on the Constitution Bench decision in Kolhapur Canesugar Works Ltd v. Union of India regarding the effect of omitting rules without saving clauses.
• The Court observed that the omission was intended to end 'unnecessary complications' and that no saving clause was included to preserve the old rule for pending cases.