The Madras High Court remanded the IGST refund matter for reconsideration as the refund was not processed due to the alert raised by the Director General of Data Analytics & Risk Management ( DGRAM ).
The court, according to the impugned GST order, noted that the IGST refund claim was that the dealer had not uploaded supporting documents.
A GST order rejecting the refund under Section 54 of applicable GST enactments was challenged by the assessee-petitioner, Colors of Rainbow before the High Court in the way of writ petition.
The assessee exported goods with IGST payment from March 2023 to May 2023 and claimed a refund for the IGST paid. While refunds for April and May 2023 were sanctioned on 07.09.2023, the March 2023 refund was not.
It was came to the knowledge that the March refund was delayed due to an alert from the Director General of Data Analytics & Risk Management ( DGRAM ), the assessee reapplied on 28.05.2023. This reapplication was subsequently rejected by the impugned order.
The refund process for the export of goods is automatic and refunds for April and May 2023 were processed and sanctioned. However, the refund claim for March 2023 was erroneously rejected on the grounds that supporting documents were not uploaded, the counsel for the assessee submitted.
He asserted that all necessary documents are available in the portal, negating the need for additional submissions.
The counsel, Mr. C. Harsha Raj appeared for the department and suggested that the matter be reconsidered, taking into account the documents already available in the portal and allowing the petitioner to submit any additional documents.
The bench of Justice Senthilkumar Ramamoorthy observed that the only reason specified therein for rejecting the refund claim was that the dealer had not uploaded supporting documents.
The assessee submitted that the processing of the refund claim is automatic and on the basis of documents already available on the portal such as shipping bills, invoices and the like. In these circumstances, the matter requires reconsideration, stated the bench.
The High Court set aside the order and remanded the matter for reconsideration. The assessee was directed to submit any additional documents to assist in the process. Subsequently, the respondent GST department was instructed to pass orders on the refund application within two months.
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