In a relief to Colgate Global Business Services, the Bombay High Court has quashed the Order rejecting GST Refund as no reason was stated by the deputy commissioner of state tax.
The Petitioner has challenged the said impugned Order mainly on the ground that the Respondent No.3 was bound to record reasons in the Order while rejecting the application for refund in view of Rule 92(3) of the Central Goods and Services Tax Rules, 2017.
A Perusal of the impugned Order indicates that the Respondent has rejected the application for refund without recording any reasons, though the same is mandatory under Rule 92(3) of the Central Goods and Services Tax Rules, 2017. In our view, the Order passed by the Respondent is in breach of the said provisions and deserves to be granted and set aside.
The division bench of Justice S.M.Modak and Justice R.D.Dhanuka held that the application for refund made by the Petitioner for the period July 2017 to March 2018 for the sum of Rs.4,33,03,066/- is restored to file before the Respondent.
The Petitioner is directed to remain present before the Respondent for personal hearing on 2nd February 2022 at 11.00 am.
The court directed the Respondent to pass a fresh Order without being influenced by the observations made and the conclusions drawn in the impugned Order dated 15th June 2020 and in accordance with law expeditiously and not later than three weeks from the date of granting personal hearing to the Petitioner.
The court further ordered that the Order passed by the Deputy Commissioner of State Tax shall be conveyed to the Petitioner within one week from the date of passing of the said Order. If refund application is allowed, the Respondent shall refund the amount due to the Petitioner within two weeks from the date of passing of such Order. If the Order is adverse against the Petitioner, the Petitioner would be at liberty to file appropriate proceedings.
Colgate Global Business Services Pvt. Ltd. vs The Union Of India
CITATION: 2022 TAXSCAN (HC) 198
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