The Kerala High court ordered the GST department to clarify regarding the condition to apply for Refund after filing NIL refund claim in FORM GST RFD-01A/RFD-01.
The petitioner, Soura Natural Energy Solutions India Pvt. Ltd. challenged the Condition (b) in Para 3 of the Circular No.110/29/2019-GST dated October 3, 2019 issued in the context of GST refund on the grounds that the same being ultra vires Section 54 (3) of Central Goods and Service Tax Act 2017 and also being arbitrary, unreasonable and it defeats the very objective of issuing the said circular.
The petitioner prayed before the court that to direct the Respondents to make facility on the GST common portal to enable the petitioner to file a revised refund claim for the tax periods, in respect of which the petitioner had inadvertently filed a ‘NIL’ refund claim or to accept such revised refund claim manually.
Mr. Shameem Ahammed M.P, the counsel for the petitioner submitted that the application of the petitioner has been rejected vide order on the premise that the petitioner had applied for refund as nil for the month of 2019 on 30, December 2019 on the same applied for refund by taking the date and also applied for refund by taking the benefit of the circular but the same has been rejected by taking aid of sub-clause (b) of Clause 3 of the circular, on the premise that no claim should have been filed by the person under the same category for subsequent period.
However, Mr. Ahammed urged it had not envisaged the situation where a person had applied for nil and refund on the same date.
On the other hand, the respondents’ authority submitted that he had already submitted a request to the department for clarification as predicament as of such registered owners including that of the petitioner had not been envisaged.
The single-judge bench of Justice Amit Rawal prima facie found the substance in the submission of Mr. Shameem Ahammed and sanguine of the fact that the Department of Revenue would come out with certain clarification. Therefore, the court posted the matter after three weeks.
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