Facts of the Case

The petitioner, Chandan Patra, approached the Orissa High Court seeking refund of a GST claim relating to transactions undertaken during the financial year 2017-18. Instead of following the statutory procedure prescribed under the GST law for claiming refund, the petitioner invoked the writ jurisdiction of the High Court and sought disposal of his representation for grant of refund.

Issues Involved

  1. Whether a writ petition is maintainable for claiming GST refund when a statutory mechanism for refund is available under the GST law.
  2. Whether the High Court should entertain a petition seeking disposal of a representation in place of the prescribed statutory refund procedure.

Petitioner’s Arguments

  • The petitioner sought a direction for refund of the GST amount pertaining to transactions of FY 2017-18.
  • The petitioner requested the Court to direct the authorities to consider and dispose of his representation for refund.

Respondent’s Arguments

  • The State opposed the maintainability of the writ petition.
  • It was contended that the GST law provides a complete statutory mechanism for claiming refund and the petitioner must avail the remedy available under the relevant provisions of the GST statute.

Court Order / Findings

The Orissa High Court declined to entertain the writ petition. The Court observed that:

  • The GST refund pertained to transactions of 2017-18, for which the GST statute provides a complete mechanism and prescribed procedure for claiming refund.
  • The High Court would not entertain the shortcut of filing a representation and seeking judicial directions for its disposal when an effective statutory remedy already exists.
  • The petitioner was granted liberty to avail any other appropriate remedy available under law in accordance with the statutory provisions.
  • Consequently, the writ petition was disposed of without granting the relief sought.

Important Clarification

  • GST refund claims must be pursued strictly in accordance with the statutory provisions and procedure prescribed under the GST law.
  • A writ petition cannot ordinarily be used as a substitute for the statutory refund mechanism.
  • Mere filing of a representation does not entitle an assessee to seek directions from the High Court for its disposal when an effective statutory remedy is available.
  • High Courts generally discourage bypassing the statutory procedure unless exceptional circumstances justify exercise of writ jurisdiction.

Sections Involved

  • Section 54 of the Central Goods and Services Tax Act, 2017 – Refund of Tax
  • Corresponding provisions of the Odisha Goods and Services Tax Act, 2017
  • Article 226 of the Constitution of India – Writ Jurisdiction


Link to download the order -

https://www.mytaxexpert.co.in/uploads/1782984121_150compressed.pdf

 

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