Can refund be kept on hold when certain investigations are going on?

certain investigations are going on

Case Title

R.K. Copper and Alloy LLP vs Union of India and Others

Court

Bombay High Court

Honorable Judges

Justice R.D.Dhanuka & Justice S.M.Modak

Citation

2022 (1) GSTPanacea 260 HC Bombay

WP(L) 30843 of 2021

Judgement Date

28-January-2022

Council for Petitioner

Bharat Raichandani

Rishabh Jain

Council for Respondent

Neeta Masurkar

Nieyaati Masurkar

Satyaprakash Sharma

Section

Section 54 (6) of CGST Act 2017.

In Favour of

In Favour of Assessee

The Bombay High Court bench of Justice R.D.Dhanuka & Justice S.M.Modak has held that refund of IGST and duty drawback to be made within a period of four weeks from date of order without fail. If further investigation is required to be made before granting final refund of IGST as well as duty drawback, provisional refund order to be passed as per Section 54(6) of the CGST Act.

FACTS OF THE CASE

The Petitioner has prayed for a writ of mandamus directing the Respondents to sanction refund of IGST amount of Rs. 5,80,58,350/- and duty drawback amounting to Rs. 39,65,237/- immediately along with interest @ 24 % p.a. and to sanction provisional refund @ 90% of the disputed amount in terms of Section 54 (6) of the Central Goods and Services Tax Act, 2017 read with Central Goods and Services Rules, 2017 and for other reliefs. It is not in dispute that the applications filed by the Petitioner for seeking refund from IGST is pending which was made vide letters dated 03/12/2021, 08/12/2021 and 16/12/2021. The Petitioner had also applied for duty drawback by those letters. There is no response received by the Petitioner to those letters/applications for seeking refund of IGST as well as duty draw back till date. The Petitioner, tenders copy of the Circular dated 23/01/2020, Press release dated 29/10/2017 and Circular No. 17/17/2017-GST dated 15/11/2017 in support of his contention that the Respondents cannot with hold the payment of refund of IGST as well as duty drawback.

certain investigations are going on

COURT HELD

Considering the facts as recorded, held that court direct the Respondent to decide the applications for refund of IGST and duty drawback made by the Petitioner referred in aforesaid within a period of four weeks from date of order without fail. Respondent shall take into consideration the Circular dated 23/01/2020, Press release dated 29/10/2017 and Circular No. 17/17/2017-GST dated 15/11/2017 and principles laid down by the Telangana High Court in case of Bhagyanagar Copper Private Limited V/s The Central Board of Indirect Tax and Customs and 5 Ors. referred to aforesaid. If further investigation is required to be made before granting final refund of IGST as well as duty drawback, the Respondent No. 3 shall pass the order for provisional refund within the time prescribed in terms of Section 54(6) of the Central Goods and Services Tax Act.

certain investigations are going on

ANALYSIS OF THE JUDGEMENT

According to tenders copy of the Circular dated 23/01/2020, Press release dated 29/10/2017 and Circular No. 17/17/2017-GST dated 15/11/2017 in support of his contention that the Respondents cannot with hold the payment of refund of IGST as well as duty drawback. He also placed reliance on judgment of Telangana High Court in case of The Central Board of Indirect Tax and Customs and 5 Ors. in Writ Petition No. 15804 of 2021, 2021-TIOL-2143-HC-Telangana-GST in support of his submission.

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R.K. Copper and Alloy LLP

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Bombay High Court