Court Buzz, GST

Kerala HC holds Duty Free Shops to be entitiled for ITC refund.

Case: CIAL Duty Free vs Union of India

Forum: Kerala High Court

Facts

The Petitioner filed a writ petition seeking refund of the inpu tax credit and praying that the Central Goods and Service Tax Act, 2017, the Integrated Goods and Service Tax Act, 2017 and the Kerala State Goods and Service Tax Act, do not apply to the supply of goods and services effected by the petitioner in the arrival and departure Duty Free Shops at the Calicut International Airport.

Key points

The Hon’ble HC held that the Respondent-Authority has erroneously held that the Petitioner does not satisfy the crucial test of sending of the goods to foreign destination where they would be received as ‘imports’, to deny the benefits of zero rated supply.

The HC thus held that the impugned order and show cause notice challenged by the Petitioner are manifestly arbitrary and in the teeth of the purpose and intent of Article 286 of the Constitution of India and the provisions of the GST law read with the Customs Act, 1962.

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