Chhattisgarh HC remands matter to Authority for GST Refund as Supply made as Inter-State was subsequently held as Intra-State [Read Order]

The Chhattisgarh High Court  remanded the matter to Authority for GST Refund as supply made as inter-State was subsequently held as intra-State.

The Petitioner-M/s Radhemani And Sons (A Proprietorship Firm) had filed a refund claim of Rs.12,69,255/- as per the provisions prescribed under Rule 89 (1) of Central Goods and Services Tax Rules, 2017 on account of “Excess payment of IGST in February, 2018 in GSTR 3B Return” for the tax period February, 2018 in RFD-01. The said application was filed by the Petitioner on 18.03.2020 and after considering the said application, a show cause notice dated 31.03.2020 was issued by the Deputy Commissioner in Form GST-RFD-08 and since the Petitioner has failed to submit any reply with regard to the said show cause notice, the Deputy Commissioner-cum-Adjudicating Authority has, therefore, rejected the said application of the Petitioner as made under the said provision vide order dated 23.04.2020.

While referring to the circular which is clarificatory in nature of the word “subsequently held”, the petitioner contended that since the said word referred to the aforesaid provisions of Section 77 of the CGST Act, 2017 read with Section 19 of IGST Act, 2017, has been interpreted by observing inter alia that the refund under the said sections is also available when the inter-State or intra-State supply made by a taxpayer, is subsequently found by taxpayer himself as intra-State and inter-State respectively, therefore, the matter may be remitted to the concerned appellate authority for the consideration of his claim/application made under sub-rule (1) of Rule 89 of the Rules, 2017 for refund of Rs.12,69,255/- (Rupees Twelve Lacs Sixty Nine Thousand Two Hundred and Fifty Five only) afresh in the interest of justice.

The single bench of Justice Sanjay S. Agrawal held that the circular dated 25.09.2021 interpreting and/or clarifying the word “subsequently held”, it would, therefore, be appropriate to remit the matter back to the concerned appellate authority. The order impugned is accordingly set aside and the matter is remitted back to the concerned appellate authority with a direction to decide the same afresh in the light of the circular issued on 25th September, 2021 in accordance with law. It is made clear that while disposing of this petition, I have not expressed any opinion on merits of the case and the concerned appellate authority shall decide the same in accordance with law.

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.