Brief summary of the case
Court: IN THE HIGH COURT OF KARNATAKA AT BENGALURU
Number: WRIT PETITION NO. 13185 OF 2020 (T-RES)
Petitioner: M/s Tonbo Imaging India Pvt Ltd
Respondent: UOI
Date of decision: 16.02.2023
Judges: Hon’ble Mr Justice S.r.krishna Kumar
The Karnataka HC quashes Rule 89(4)(C) of the CGST Rules 2017 as being ultra vires, the provisions of Sec 16 of the IGST ACT 2017 and Sec 54 of the CGST Act 2017 and is in violation of Article 14 of the Indian Constitution and also not in the objectives of the vision of the government for international trade and FTP as well as Article 286 of the Indian Constitution.
The petitioner is involved in the business of exporting specialized and customized imaging products and was claiming a refund of accumulated ITC, it doesn’t have domestic supply of goods and refund was rejected.
The petitioner challenge the validity of Rule 89(4)(C) and order rejecting the refund. For assessee whose refund is restricted due to amended (Notification 16/2020 CT dt 23/03/2020) Rule 89(4)(C) which restrict export turnover (without payment of tax under bond or LUT) to 1.5 times value of like goods domestically supplied or similarly placed, can file appeal against such order to claim refund.