Rejection of GST refund u/s 77(1) of CGST, cannot be claimed on fresh application:  Jharkhand HC [Read Order]

A Single Bench of Jharkhand High Court held that rejection of GST refund under Section 77(1) of CGST Act 2017, could not be claimed on fresh application.

The Petitioner, Gajraj Vahan Private Limited in this case had deposited the tax on 14.02.2020 whose refund was rejected as time barred by the impugned order dated 24.04.2020.

For the Petitioner: Mr. N.K. Pasari placed a circular no. 162/18/2021- GST dated 25.09.2021 issued by the CBIC on the subject - clarification in respect of refund of tax specified in section 77(1) of the CGST Act and Section 19(1) of IGST Act-Reg. He further submitted that Sub Rule (1A) had been added to Rule 89 of CGST Rules, 2017.

 Sub Rule (1A) of  Rule 89 of CGST Rules, 2017 : “Any person, claiming refund under section 77 of the Act of any tax paid by him, in respect of a transaction considered by him to be an intra-State supply, which is subsequently held to be an inter-State supply, may, before the expiry of a period of two years from the date of payment of the tax on the inter-State supply, file an application electronically in FORM GST RFD-01 through the common portal, either directly or through a Facilitation Centre notified by the Commissioner:

Provided that the said application may, as regard to any payment of tax on inter-State supply before coming into force of this sub-rule, be filed before the expiry of a period of two years from the date on which this sub-rule comes into force.”

Gaurav Raj appeared for the state.

 A Single Bench of Chief Justice Deepak Roshan no fresh application can be made on the face of rejection observing that, as per the amended Rule 89 (1A) of CGST Rules, 2017 and Circular dated 25.09.2021, the limitation period for seeking refund would be two years from the date of the instant notification i.e. 24.09.2021. However, in the face of rejection order, petitioner cannot make a fresh application, though the instant amendment and the notification beneficially applies to his case also.

The case was listed on 01.03.2023.

To Read the full text of the Order CLICK HERE

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