Bombay HC Quashes IGST Refund Rejection Order, Accepts 25-Day Delay Condonation Request Considering Nascent Stage of GST Regime [Read Order]

The division bench, comprising Justice K.R. Shriram and Justice Jitendra Jain of the Bombay High Court, quashed the Integrated Goods and Service Tax ( IGST ) refund rejection order and accepted the 25-day delay condonation request, taking into account the nascent stage of the GST regime.

The assessee is an individual carrying on business in the name and style of M/s. Air Miracle. The petitioner undertakes heating, ventilation, air conditioning, and cleanroom projects for hospitals, pharmaceutical companies, IVF laboratories, biotech laboratories, etc. The petitioner had supplied goods to one export-oriented unit, viz., Apothecon Pharmaceuticals Pvt. Ltd., and on the supply, the petitioner had charged IGST at the rate of 18% p.a., and the petitioner has discharged the IGST liability as well.

Further entitled to a refund of the IGST paid and accordingly filed an application for refund, claiming a sum of Rs. 17, 52,468/-. The application was rejected by an order dated September 21, 2019 passed by the Assistant Commissioner. The rejection order has been passed without giving any reasons and also without application of mind.

It was preferred an appeal against the order passed by the Assistant Commissioner of CGST and Central Excise before the Commissioner of CGST and Central Excise, who rejected the appeal on the grounds that the appeal ought to have been filed within three months with a provision to extend by one month upon sufficient cause being shown, but the appeal was filed about 29 days late and hence barred by limitation.

Further has challenged an order passed by the Assistant Commissioner of CGST and Central Excise and an order passed by the Commissioner of CGST and Central Excise.

The department contended that if the petitioner had not approached the Court within the time prescribed for filing the appeal, the Court could not exercise its jurisdiction under Article 226 of the Constitution of India.

The bench observed, “Our judicial conscience does not permit us to reject this cause shown as bogus, particularly in view of the fact that the petitioner was an individual and the GST regime was at a nascent stage. Moreover, in both orders impugned in the petitions, there is no whisper about the merits of the application.”

Further court rejected the department's argument that the writ petition is not maintainable as it has been filed beyond the time provided for an appeal and held that writ jurisdiction is invokable in light of Article 300A.while remanding the matter for reconsideration, directed the department to reconsider the application on its merits.

CESTAT quashed the order rejecting Integrated Goods and Service Tax ( IGST ) on the grounds that the order was passed without any reason and without application of mind.

To Read the full text of the Order CLICK HERE
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