Rule 96(10) of CGST Rules Omission Operates Prospectively But Applies to Pending Proceedings: Gujarat HC

The Gujarat High Court has provided a nuanced interpretation of the omission of Rule 96(10) of the CGST Rules, a provision that restricted certain exporters from claiming IGST refunds. The court held that while the omission of the rule is legally considered to operate prospectively (i.e., from the date it was removed), its benefit must be extended to all pending proceedings. This means that any appeal or refund claim that was pending on the date of the omission should be decided as if the restrictive rule never existed. This approach ensures fairness and consistency, preventing a situation where cases filed before the omission are decided under the old, more restrictive rule. This judgment is a major relief for exporters whose legitimate refunds were stuck in litigation due to the now-defunct rule.