GST Dept Denies GST Refund on Excess Amount Deducted: Calcutta HC Mandates Action on Representation Within 4 Weeks [Read Order]
The Court clarified that the direction does not amount to ordering payment nor overriding statutory limitation.
The Calcutta High Court has ordered the Goods and Services Tax (GST) to take up on the representation of GST refund relating to alleged excess deduction of GST by the departmental authority within 4 weeks.
The writ petition was filed by R.B. Construction, alleging arbitrary action by the State authorities in failing to refund excess GST deducted from payments due to the petitioner.
The controversy arose after the petitioner submitted a representation seeking refund of GST allegedly deducted beyond what was legally due. According to the petitioner, the Assessing Authority did not act upon the representation nor process the refund claim, compelling the petitioner to invoke writ jurisdiction.
The respondents, on the contrary, contended that no amount was due, and further argued that the refund claim was barred by limitation. These issues remained undecided by the Court at this stage.
Appearing for the petitioner, Sattwik Bhattacharyya, Aashutosh Bhattacharyya, T. Niyogi, and Aritra Roy, argued that the inaction of the authority amounted to arbitrary administrative conduct, necessitating a judicial direction for consideration of the representation.
The Single Judge Bench of Justice Om Narayan Rai noted that since the petitioner had already submitted a representation before Respondent No. 4, it was incumbent upon the authority to consider and dispose of the same. Therefore, the Respondent was directed to pass a reasoned order on the representation, after granting an opportunity of hearing, within four weeks from the date of communication of the order.
The bench clarified that the direction does not obligate the authority to grant refund. Additionally, it cannot be treated as a passport to bypass statutory limitation. All issues were left open to be decided by the competent authority strictly in accordance with law.
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