The Madhya Pradesh High Court has disallowedrefund of accumulated credit of compensation cess in the absence of ITC of cess in Credit Ledger for relevant period.
The petitioner challenged the show cause notices issued and the consequential orders passed by the competent authority refusing claim for refund of accumulated credit of compensation cess.
The revenue contended in its counter-reply that the impugned consequential ordersdeclining refund contain sufficient reasons to save them from being sacrificed at the alter of natural justice and the claim for the refund made by the petitioner was time-barredu/s 54 (14) (2) of the Central Goods and Services Tax Act, 2017. The Revenue further stated that the petitioner failed to avail the input tax credit of compensation cess on coal during the relevant period and the claim for refund for the financial year 2017-18 and 2018-19 was inadmissible.
The Revenue contends that the petitioner submitted the application for a refund under the wrong category and objected to the maintainability of this petition for the petitioner’s failure to avail the statutory remedy of appeal u/S. 107 of CGST Act.
Justice Sheel Nagu & Justice Maninder S Bhatti observed that the claim for refund has been declined by assigning reasons that are sufficient to enable the assessee to know the exact cause for rejection of the claim for refund, but the reasons assigned cannot categorize the impugned orders to be non-speaking.
The Court declined and relegates the petitioner to avail remedy of appeal u/S. 107 of the C.G.S.T. Act, 2017,within 60 (sixty) days and dismissed both the writ petitions.
Shri MP Devnath & Shri Akshay Sapre appeared for the petitioner and Shri Abhijeet Shrivastava appeared for the respondent.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to TaxscanAdFree. Follow us on Telegram for quick updates.
