Kerala High Court Strikes Down Rule 96(10) of CGST Rules Retrospectively, Finds Them Ultra Vires To CGST Act

The Kerala High Court struck down Rule 96(10) of the CGST Rules, declaring it ultra vires. The rule restricted exporters from claiming refunds if they had availed of certain benefits under the Advance Authorization or Export Promotion Capital Goods (EPCG) schemes. The court held that the rule was beyond the scope of the CGST Act and violated the principles of natural justice. This ruling provides significant relief to exporters who were denied refunds due to the restrictive rule and ensures that they can claim refunds without being penalized for availing of legitimate benefits under other schemes. The decision is expected to streamline the refund process and support the export community.