Importers and Tax Department are waiting for a decision from Supreme Court in matter of refunds of customs to the importers. About 25 companies had paid 12% GST instead of only 6% required as per law, while importing their products. They applied for a refund but were denied as the tax department claimed that refunds cannot be granted unless the assessment order is challenged and no such order has been issued in these cases.
Abhishek A Rastogi, Partner at Khaitan & Company said that the revenue department claimed that refunds cannot be granted unless assessment order is issued and challenged but in most cases of refund there is no assessment order.
The case has reached the SC after the Customs department challenged an earlier ruling of November 2017 by Delhi High Court. Clarity will come only after a decision.
