Refund of IGST on export be rejected on the ground that wrong ITC

IGST on export be rejected

Case Title

M/s Varidhi Cotspin Pvt Ltd

Vs

State of Gujrat

Court

Gujarat High Court

Honorable Judges

Justice N V Anjaria

Citation

2022 (7) GSTPanacea 231 HC Gujarat

W.P.A. 5172 of 2022

Judgement Date

06-July-2022

Council for Petitioner

Hardin P Modh

Council for UOI

 

Council for State

Trupesh Kathiria

Favour

Assessee

Section

54 and 56 of CGST Act,2017.

The Gujrat High Court bench of Justice N V Anjaria has held that the Input short ground only, the impugned order deserves to be quashed.

FACTS OF THE CASE:

The petitioner was rejected for a refund claim by order under section 54(5) read with section 56 of CGST Act,2017, treating the claim is inadmissible and wrong.

The petitioner is an exporter having a valid export licence,  under FTP 2015-20 and consequently the petitioner so filed the refund of IGST paid on export. The refund application is filed for the July 2017 and Aug 2017 on 2022, which is rejected on the ground that refund period is more than 2 years.

But on the next date personal hearing and after the representation sought from petitioner  the ground of rejection is changed that the ITC is wrong being negative.

IGST on export be rejected

COURT HELD

Considering the facts as recorded, the court the ground being short and infirmed the order of rejection is quashed and the refund application is allowed to be reconsidered.

IGST on export be rejected

ANALYSIS OF THE JUDGEMENT

The claim of tax payer may not be rejected by the authorities on mere ground and infirm and short ground of reason.

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M/s Varidhi Cotspin Pvt Ltd

For Reference Visit:

Gujarat High Court