Omission Of Rule 96(10) Of CGST Rules Operates Prospectively But Applies To All Pending Proceedings: Gujarat High Court

The Gujarat High Court has delivered a nuanced judgment on the omission of Rule 96(10) of the CGST Rules, a provision that had restricted IGST refunds for certain exporters. The High Court held that while the legal principle is that the omission of a rule operates prospectively (from the date of omission), its benefit should be applied to all pending proceedings. This means that any appeal, adjudication, or refund claim that was pending on the date the rule was omitted should be decided as if the restrictive rule never existed. The court reasoned that this approach would prevent discrimination and ensure consistency. This ruling provides significant relief to exporters whose IGST refunds were stuck due to this rule, allowing their pending cases to be processed favorably without the restrictive condition, even if the original transaction occurred when the rule was in force.