Bombay HC quashes Order rejecting GST Refund Application, directs Commissioner to pass order after granting opportunity of being heard [Read Order]

The Bombay High Court has quashed the Order rejecting GST Refund Application, and directed the Commissioner to pass order after granting the opportunity of being heard.

The Petitioner, M/s. Globus Petroadditions Pvt. Ltd. had applied for refund of GST to the Respondent. The refund application was rejected. Being aggrieved by Order rejecting those two applications, the Petitioner filed an appeal before the Respondent, Additional Commissioner. The Respondent was pleased to set aside the orders passed by the Respondent and allowed the appeal.

Upon further examination in the matter it has been held that in respect of refund claim filed under ‘Any Other’ category instead of category under which Nil refund claim was filed, the condition of the Circular No. 110/29/2019-GST dated 03/10/2019, that of refund application for subsequent period did not appear to fulfilled. The applicant were not eligible to file refund under ‘Any Other’ category for the period July to September 2018 as they had filed the refund claim for subsequent period i.e. October to December 2018.

The division bench of Justice S.M.Modak and Justice R.D.Dhanuka has held that a perusal of the Order passed by the Assistant Commissioner indicates that he has refused to comply with the Order passed by the Commissioner (Appeals-II) by recording reasons as to why the said Order cannot be complied with as if the Assistant Commissioner was sitting in appeal against the order of the Commissioner (Appeals). 

“In our view the Assistant Commissioner could not have refused to comply with the Order passed by the Commissioner (Appeals-II) on the ground that a decision was taken to impugn the said Order dated 14/10/2019 before GST Tribunal or on other ground recorded by the Assistant Commissioner about his dissent not to follow the said Order passed by his Superior Authority i.e. Commissioner (Appeals- II),” the court added.

The court has directed the Assistant Commissioner is directed to comply with the Orders in Appeal passed by the Commissioner (Appeals-II) Central Tax Pune, within four weeks from the date of communication of this order and to pass an appropriate order in accordance with law without being influenced by the observations made and the conclusion drawn in the said Order.

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