National Ventures Private Limited Vs Union Of India

This case concerns a legal challenge against an order dated July 13, 2021, issued by the Additional Commissioner of Sales Tax (Appeal) in Bhubaneswar, relating to Appeal No. AA(GST)-08/BH-III/2020-21. The contested order upheld a previous decision from March 18, 2020, by the Deputy Commissioner of State Tax, CT & GST Circle, Bhubaneswar-III. The Deputy Commissioner had rejected the petitioner’s application for a refund of the unutilized balance of input tax credit under Section 54 of the Odisha Goods and Services Tax Act, 2017 (OGST Act), for the period from June 1, 2019, to October 31, 2019. Seeking redress, the petitioner has approached the High Court under Articles 226 and 227 of the Constitution of India. The matter is being addressed through both virtual and physical modes.

In this case, the petitioner is challenging an order dated 13th July 2021, issued by the Additional Commissioner of Sales Tax (Appeal) in Bhubaneswar. This appeal, numbered AA(GST)-08/BH-III/2020-21, was filed against an earlier order dated 18th March 2020 by the Deputy Commissioner of State Tax, CT & GST Circle, Bhubaneswar-III. The Deputy Commissioner had rejected the petitioner’s application for a refund of the unutilized balance of input tax credit under Section 54 of the Odisha Goods and Services Tax Act, 2017 (OGST Act) for the period from 1st June 2019 to 31st October 2019.

The petitioner has approached this Court under Articles 226 and 227 of the Constitution of India. They seek an appropriate writ, order, or direction from the Court to instruct the opposite parties to pass orders allowing the refund of the unutilized input tax credit as per their application. The case is being heard in both virtual and physical modes.

This matter has been addressed both virtually and physically. The Petitioner is challenging an order dated 13th July 2021, issued by the Additional Commissioner of Sales Tax (Appeal) in Bhubaneswar regarding Appeal No. AA(GST)-08/BH-III/2020-21. This appeal was directed against an order dated 18th March 2020 by the Deputy Commissioner of State Tax, CT & GST Circle, Bhubaneswar-III, which rejected the Petitioner’s application for a refund of the unutilized balance of input tax credit under Section 54 of the Odisha Goods and Services Tax Act, 2017 (OGST Act). The refund pertains to the period from 1st June 2019 to 31st October 2019. The Petitioner has approached the Court under Articles 226/227 of the Constitution of India.

The Petitioner is seeking the following reliefs:

1. Issuance of an appropriate writ, order, or direction to the opposite parties to allow the refund of Rs. 41,15,556 under Section 54(3) of the OGST/CGST Act.

2. Issuance of an appropriate writ, order, or direction to set aside the order dated 13th July 2021 (Annexure-4) passed by the Additional Commissioner of State Tax (Appeal), Bhubaneswar, and to grant the refund of Rs. 41,15,556.

The Petitioner argues that the rejection of the refund application, as issued in Form GST RFD-06, was based on the ground that the exported goods, “Iron Ore Fines,” which fall under Code No. 26011142 specified in the Second Schedule of the Export Tariff appended to the Customs Tariff Act, are subject to a Nil rate of tax.

The petitioner has approached the court via virtual or physical modes to challenge the order dated 13th July 2021, issued by the Additional Commissioner of Sales Tax (Appeal), Bhubaneswar, in Appeal No. AA(GST)-08/BH-III/2020-21. This order was a response to an earlier decision on 18th March 2020 by the Deputy Commissioner of State Tax, CT & GST Circle, Bhubaneswar-III, which rejected the petitioner’s application for a refund of the unutilized balance of input tax credit under Section 54 of the Odisha Goods and Services Tax Act, 2017 (OGST Act). The petitioner seeks the court’s intervention under Articles 226 and 227 of the Indian Constitution to issue an appropriate writ, order, or direction to the opposite parties, allowing a refund of ₹41,15,556 under Section 54(3) of the OGST/CGST Act and to set aside the order dated 13th July 2021.

The petitioner contends that the rejection of the refund application, issued in Form GST RFD-06 on the grounds that the levy of a nil rate of tax on exported goods (specifically “Iron Ore Fines” under Code No. 26011142 of the Second Schedule of the Export Tariff appended to the Customs Tariff Act, 1975) does not qualify for a GST refund according to Clause (i) of the proviso to subsection (3) of Section 54 of the OGST/CGST Act, is arbitrary and demonstrates non-application of mind. Furthermore, the petitioner argues that the Adjudicating Authority misapplied the ruling of the Goa Authority for Advance Ruling (order dated 21st May 2019, No. GOA/GAAR/11 of 2018-19/514) in the case of M/s. Chowgule & Co Pvt. Ltd., when determining the taxpayer’s entitlement to claim a refund for the export of “Iron Ore Fines” under Section 16(3)(a) of the IGST Act, 2017 read with Section 54(3) of the CGST/OGST Act.

This matter involves a legal challenge against the order dated July 13, 2021, issued by the Additional Commissioner of Sales Tax (Appeal) in Bhubaneswar. The case pertains to an appeal against the order dated March 18, 2020, by the Deputy Commissioner of State Tax, CT & GST Circle, Bhubaneswar-III. The Deputy Commissioner’s order had rejected the application for a refund of unutilized input tax credit under Section 54 of the Odisha Goods and Services Tax Act, 2017 (OGST Act) for the period from June 1, 2019, to October 31, 2019. The petitioner has approached the Court invoking Articles 226 and 227 of the Constitution of India, seeking:

1. An appropriate writ, order, or direction to the opposite parties to allow a refund of Rs. 41,15,556 under Section 54(3) of the OGST/CGST Act.

2. An appropriate writ, order, or direction to set aside the order dated July 13, 2021, passed by the Additional Commissioner of State Tax (Appeal), Bhubaneswar, and to allow the refund of Rs. 41,15,556.

The petitioner argues that the rejection of the refund application, which was issued in Form GST RFD-06, on the grounds that the levy of a Nil Rate of Tax on exported goods (specifically “Iron Ore Fines” under Code No. 26011142 as per the Second Schedule of the Export Tariff in the Customs Tariff Act, 1975) does not qualify for a GST refund under Clause (i) of the Proviso to Section 54(3) of the OGST/CGST Act, is arbitrary and reflects non-application of mind.

Furthermore, the petitioner contends that the Adjudicating Authority, when deciding on the entitlement of the taxpayer to claim a refund against the export of “Iron Ore Fines” under Section 16(3)(a) of the IGST Act, 2017, read with Section 54(3) of the CGST/OGST Act, has incorrectly applied the Goa Authority for Advance Ruling order dated May 21, 2019, in the case of M/s. Chowgule & Co Pvt. Ltd.

Aggrieved by the decision of the Adjudicating Authority, the petitioner appealed under Section 107 before the Additional Commissioner of State Tax (Appeal), who confirmed the Deputy Commissioner’s order and sustained the rejection of the refund application. Although the petitioner has the right to further appeal to the Appellate Tribunal under Section 112 of the OGST/CGST Act, the appeal has been brought before this Court.

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