The Gujarat High Court has held that the customs department could not have withheld the refund of IGST only on the ground of difference between the GST data as per GST return and customs data ignoring the representation made by the petitioner.

The bench of Justice Bhargav D. Karia and Justice Pranav Trivedi has observed that the customs department has failed to take note of representation made by the petitioner along with the relevant documents to show that the petitioner has exported the goods being zero rated supply as per provisions of section 16 of the Integrated Goods and Service Tax Act, 2017 read with Rule 96 of the GST Rules,2017.

The petitioner, an exporter, had duly paid IGST on goods exported. However, while filing Form GSTR-1, a typographical error occurred—Table 6A, meant for export details, reflected the IGST amount as ‘Zero’. Additionally, the IGST was reported in Table 3.1(a) of Form GSTR-3B (pertaining to domestic supplies) instead of Table 3.1(b) (meant for exports). Due to this mismatch, the ICEGATE system generated a refund scroll showing nil refund payable.

Although the petitioner furnished documentary evidence confirming the exports as zero-rated supplies, the Customs department denied the refund on the ground of discrepancy between the GST returns and customs records. Aggrieved by this rejection, the petitioner approached the High Court seeking release of the IGST refund.

The bench directed the department to immediately sanction the refund of IGST paid with regard to goods exported i.e. zero rated supplies with statutory interest as may be applicable in accordance with law from the date of shipping bills till the date of actual refund.

Case Details

Case Title: Ruhi Siraj Makda Proprietor Of Aries Impex Versus Union Of India & Anr.

Case No.: R/Special Civil Application No. 2507 Of 2023

Date:  14/08/2025

Counsel For  Petitioner: Hiren J Trivedi

Counsel For Respondent:  Cb Gupta

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