At the crossroads between Customs and GST

The Delhi High Court’s ruling in Talbros Sealing Material Pvt. Ltd. seeks to bring to a closure unprecedented clarity to the long-standing jurisdictional ambiguity governing IGST refund recoveries on exports. For the first time, the Court has confronted the core conflict whether IGST demands must be initiated by GST officers under the CGST/IGST framework or whether Customs officers can assert authority under the Customs Act and has directed both departments to file a joint affidavit definitively identifying the “proper officer” for such proceedings. This single direction transforms the case from a routine export-classification dispute into a structurally significant moment for India’s indirect tax administration, with the potential to invalidate scores of past and pending SCNs and reshape how IGST-related enforcement is undertaken at ports across the country. J the App by JustIDT takes a dive into the subject.