• Dated 09^th September, 2024

GST REFUNDS CANNOT BE SOLELY DENIED FOR FILLING MANUAL REFUND APPLICATION INSTEAD OF FILLING THE SAME THROUGH ONLINE MODE

Himachal Pradesh High Court overruled the rejection of manual GST refund applications. This case whirls around the interpretation and application of Rule 97A of the Central Goods and Services Tax (CGST) Rules, which allows for manual submission of GST refund applications under specific circumstances. The court's ruling addresses the conflict between the rule and a departmental circular mandating electronic filing, stating clarity on the matter.

Background of the case: -

The petitioner was issued a order by the respondent, declining to consider his manual GST refund applications for the financial year 2017-18 and 2020-21. The rejection to the application was based on absence of an RFD-01 application form, the petitioner's GST registration which was effective from October 2020, requirement of refund application be filed electronically not manually.

Being aggrieved a writ petition was filed by the petitioner seeking clarificationregarding the circular dated 18.11.2019 and the provision descried under Rule 97A of the CGST Rules.

Petitioner's Contention: -

The petitioner argued that they were forced to file refund applications manually due to their GST registration being effective only from October 2020, following the acquisition of a business undertaking Consequently, they couldn't file the applications electronically. The petitioner referred to Rule 97A of the CGST Rules, which allows manual filing of applications in certain circumstances.

Held:-

The Court while allowing the appeal observed that Rule 97A allows for manual submission of refund applications.Therefore, the Hon'ble High court clarifies that interpretation of Rule 97A concerning manual GST refund applications. By setting aside the rejection of the petitioner's applications, the court has reinforced the statutory provisions of the CGST Rules over conflicting departmental circulars. The Hon'ble High Court while remanding back the matter to adjudicating authority for fresh consideration on its merits puts a cost of Rs.10,000/- on the respondent.

Prepared by: Pritam Ghosh
Reviewed by: Jaidip Basu

AMN Life Pvt. Ltd. vs. Union of India(2024) 19 Centax 489 (H.P.)