Case Details: Commissioner of Customs, Tuticorin Versus Vedanta Ltd. (2025) 28 Centax 204 (Mad.)
Judiciary and Counsel Details
- RMT. Teekaa Raman & N. Senthilkumar, JJ.
- Shri R. Anandakumar, for the Petitioner.
- S/Shri Vishal Agarwal, Senior Counsel & Y. Prakash, Assisted by M. Karthikeyan for the Respondent.
Facts of the Case
The assessee, engaged in manufacturing and exporting copper products, exported goods under multiple shipping bills. Post-export price revisions led to the issuance of debit notes and additional IGST payment. While a partial refund was granted, the remaining claim was denied due to data transmission failures between GSTN and ICEGATE. The assessee relied on Circular No. 40/2018-Customs dated 24-10-2018, which permits manual refund processing in cases of technical errors, while the revenue argued that the circular applied only to typographical mistakes. The Single Judge, holding that procedural lapses should not obstruct legitimate refunds, directed the revenue to grant the refund with interest.
High Court Held
The Hon’ble High Court upheld the Single Judge’s order, finding no irregularity or illegality warranting appellate interference. It relied on judicial precedents affirming that system incompatibilities cannot justify refund denial. Emphasizing that CBIC circulars are binding on the department, it rejected the revenue’s contention and directed compliance with the refund order within the stipulated timeframe. The appeal was dismissed.
List of Cases Cited
- Real Prince Spintex Pvt. Ltd., v. Union of India — 2020 (35) G.S.T.L.369 — Referred [Para 19]
- CCE v. Ratan Melting & Wire Industries — 2008 taxmann.com 1649/231 E.L.T. 22 (SC) — Referred [Para 19]
- Precot Meridian Ltd. v. Commissioner of Customs, Tuticorin — 2020 (34) G.S.T.L. 27 (Mad.) — Referred [Para 19]
- TMA International Ltd., v. Union of India — 2020(35) G.S.T.L. 22 — Referred [Para 19]
List of Circulars Cited
- Circular No. 40/2018-Customs dated 24.10.2018
