The Rewari Division has affected a revenue recovery of Rs 32.60 cr in cash from M/s. HOLLISTER MEDICAL INIDA PRIVATE LIMITED, REWARI, HARYANA, 123501 on 28th last month, said a report from the official sources.
The brief issue is as follows:
During the follow up action on DGARM Report No. 49 issued in DGARM’S Letter F. No. DGARM/TT/BIA/RTP/2022-NTCP/Dated 19.09.2022 Regarding Risk Analysis of IGST Refunds under Violation of Rule 96(10) of CGST Rules, it has been noticed that M/s. HOLLISTER MEDICAL INIDA PRIVATE LIMITED, REWARI, HARYANA, 123501 was covered in the List Circulated.
An exporter can avail of refund borne on inputs either under LUT (Rules 89 to 94 of theCGST Rules, 2017) or under the IGST route in terms of Rule 96 of the said Rules.
However,the said Rule 96, vide sub-clause IO, provides an express debar to IGST refunds in case the exporter has received supplies on which the benefit of notification no. 48/2017-CT datedOI.IO.2017 or notification no. 78/2017-Customs or notification no. 79/2017-Customs, both dated 13.10.2017 had been availed.
As such, an analysis was carried out on IGST refunds to see whether the said Rule 96(IO)had been violated. In this regard, as per records available with the division, it has been found that they have availed notifications 78/2017(ibid) during the period 09.10.2018 to 31.03.2022 and violated 96(10) of said rule.
Therefore, they were requested to pay the incorrectly availed Refund amount along with applicable interest and penalty under section A non adversarial persuasive approach to collect the amount was initiated on the assessee. All doubts and apprehensions raised by the assessee were cleared during several rounds of meeting.
The party agreed to pay the dues with interest and in terms of the Board’s Circular No. 174/06/2022-GST Dt 06.07.2022.
The assessee has since paid the tax amount of Rs 24,22,85,995/- and Interest Amount of Rs totaling to Rs Thirty Two Crore Sixty Lakh Ninety Seven Thousand Five Hundred and Ten Rupees only) in cash and submitted DRC-03.
The report also congratulated the Commissioner Sophia Martin Joy, Additional Commissioner Rajesh Kumar, Superintendent Satender Gour and Inspector Rambali Singh for the sincere efforts in follow-up and recovery of the huge amount.
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