Saru Silver Alloys Pvt Ltd Vs Union of India and 7 others (Allahabad High Court)

Rule 96(10) of CGST Rules, 2017, albeit prospectively, has been omitted and (iii) review petition has been allowed by Gujarat High Court in Cosmo Films case.We share the recent order passed by the Hon’ble Allahabad High Court.The petitioner is an exporter. It imported duty free raw material under Advance authorisation in terms of Notification No.79. It exported final products on payment of IGST. It claimed refund and it was sanctioned. Recovery was sought to be undertaken alleging violation of Rule 96(10) of the CGST Rules, 2017. Demand was confirmed. The petitioner applied for rectification. The same was rejected relying upon decision of Gujarat High Court in Cosmo Films. Hence, writ petition came to be filed challenging the legality and constitutional validity of Rule 96(10).The Hon’ble Allahabad High Court issue notice and grants stay on recovery pursuant to order confirming demand and rectification. It notes the contention that:(i) Kerala High court has already struck down the impugned Rule 96(10);(ii) the rule, albeit prospectively, has been omitted and(iii) review petition has been allowed by Gujarat High Court in Cosmo Films case.