GST Officers cannot reject Refund Application after 15 Days: Delhi High Court [Read Order]

Refund Application - GST Refund - Taxscan

The Delhi High Court said that the officers have no right to find a deficiency in refund application after 15 days.

The writ petition had been filed by the petitioner Jian International seeking a direction to the respondent, Commission of Delhi Goods to grant refund claimed under Section 54 of the CGST Act, 2017 as well as the grant of an interest in accordance with Section 56 of CGST Act.

The Petitioner stated that in accordance with Section 54(6) read with Rule 91 of CGST Rules, 2017, the proper officer is required to refund at least 90% of the refund claimed on account of zero-rated supply of goods or services or both made by registered persons within 7 days from the date of acknowledgment issued under Rule 90.

The petitioner contended that despite the period of 15 days from the date of filing of the refund application has expired, the respondent has to date neither pointed out any deficiency/discrepancy in FORM GST RFD-03 nor it has issued any acknowledgment in FORM GST RFD-02.

The respondent authority admitted that there was leniency on their part in processing the petitioner’s application.

However, the respondent authority contended that a formal deficiency memo will have to be issued as certain documents though annexed with the writ petition had not been uploaded by the petitioner along with its refund application.

The two-judge bench of Justice Manmohan and Sanjeev Narula held that the respondent had lost the right to point out any deficiency, in the petitioner’s refund application, at this belated stage. Accordingly, the Court directed the respondent to pay to the petitioner the refund along with interest in accordance with law within two weeks.

The High Court found that Rules 90 and 91 of the CGST Rules provide a complete code with regard to acknowledgment, scrutiny, and grant of refund. The said Rules also provide a strict timeline for carrying out the aforesaid activities.

“Rules 90 states that within 15 days from the date of filing of the refund application, the respondent has to either point out discrepancy/deficiency in FORM GST RFD-03 or acknowledge the refund application in FORM GST RFD-02,” the bench observed.

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