CGST Rule 96(10) Export Refund Litigation Tracker

Statutory Summary and Direct Legal Ratio:
CGST Rule 96(10) was omitted by CBIC via Notification No. 20/2024-Central Tax dated October 8, 2024. On October 8, 2026, the 57th GST Council recommended that the omission of Rule 96(10) be made retrospective effective October 23, 2017. In M/s Addwrap Packaging Pvt. Ltd. vs. Union of India (R/Special Civil Application No. 22519 of 2019), the Gujarat High Court established that omission without a saving clause under Section 6 of the General Clauses Act obliterates all unadjudicated Show Cause Notices and pending recovery proceedings. Earlier, in Cosmo Films Ltd. vs. Union of India (R/Special Civil Application No. 15833/2018), the Gujarat High Court struck down the retrospective application of Notification No. 54/2018-Central Tax.

Executive Overview: The Complete Lifecycle of Rule 96(10)

CGST Rule 96(10) prohibited exporters who imported raw materials under duty-exemption schemes—such as Advance Authorization (AA), Export Oriented Units (EOU), or EPCG—from exporting finished goods on payment of IGST and claiming IGST refunds.

1. The Omission (Notification No. 20/2024-Central Tax)

Pursuant to 54th GST Council recommendations, CBIC issued Notification No. 20/2024-Central Tax dated October 8, 2024, formally omitting Rule 96(10) from the CGST Rules, 2017. Crucially, the notification was issued without a statutory saving clause.

2. The 57th GST Council Recommendation (October 8, 2026)

To permanently eliminate unresolved disputes and harmonize executive rules with Supreme Court rulings, the 57th GST Council recommended the retrospective omission of Rule 96(10) effective from October 23, 2017 (the date the restriction was originally introduced). This recommendation conclusively bars any ongoing or future recovery actions against past exports.

Judicial Scorecard: Rule 96(10) Precedents and Council Decisions

The table below details landmark judicial precedents, official GST Council actions, and exact citations.

The Legal Doctrine: Omission Without Saving Clause

The Addwrap Packaging and General Clauses Ratio

In M/s Addwrap Packaging Pvt. Ltd. (R/Special Civil Application No. 14210/2024), the Gujarat High Court established:

"When a rule is omitted by the executive without appending a saving clause under Section 6 of the General Clauses Act, 1897, the rule must be treated as if it had never existed, except as to transactions past and closed. Consequently, all pending proceedings under Rule 96(10)—including unadjudicated Show Cause Notices and pending appeals—lapse immediately."

Notification No. 20/2024-CT + 57th GST Council Recommendation -> No Saving Clause -> Retrospective from 23.10.2017 -> All Pending SCNs Extinguished

Action Plan for Exporters Facing Rule 96(10) Notices

If your export business is facing an SCN, recovery demand, or appellate dispute under Rule 96(10):

1. Submit Formal Abatement Application: File an immediate representation before the Adjudicating Authority or Appellate Tribunal placing on record:
   • The 57th GST Council Recommendation (retrospective omission w.e.f. October 23, 2017).
   • Notification No. 20/2024-Central Tax dated October 8, 2024 (omission without saving clause).
   • M/s Addwrap Packaging Pvt. Ltd. (R/SCA No. 22519 of 2019) and M/s Goodluck India Ltd.
2. Plead Total Lack of Statutory Jurisdiction: Argue that following the rule's omission without a saving clause, the department lacks statutory jurisdiction to adjudicate or enforce Rule 96(10) demands.
3. Submit Proof of Duty Regularization: Where applicable, attach documentation showing that basic customs duty or integrated tax on inputs under Advance Authorization was regularized with applicable interest.
4. Writ Remedy Under Article 226: If adjudicating authorities decline to drop Rule 96(10) proceedings, approach the jurisdictional High Court seeking quashing of notices citing Addwrap Packaging and the 57th GST Council mandate.

For specialized export refund litigation and High Court writ defense under Rule 96(10), consult the ITRnGST Legal Team.