Facts of the Case

Trexquant (India) Business Consulting LLP filed a writ petition before the High Court of Punjab and Haryana at Chandigarh against the Union of India and others, seeking quashing of a Refund Rejection Order dated 19.07.2022 (Annexure P-2) passed by the third respondent under the GST law. In its reply, the State respondents (Nos. 2 and 3) averred that, in view of a clarification issued by the Government of India, the petitioner was in fact entitled to the refund, and that it would be released within 60 days from the date the application landed on the GST portal. The matter was heard and decided on 07.11.2023 by a Division Bench.

Issues Involved

  1. Whether the Refund Rejection Order dated 19.07.2022 was sustainable in view of the Government of India's clarification recognising the petitioner's entitlement to refund.
  2. Whether a time-bound direction was warranted for processing the conceded refund.

Petitioner's Arguments

  • The Refund Rejection Order dated 19.07.2022 was unsustainable and liable to be quashed.
  • The GST refund was lawfully due to the petitioner and ought to be released without further delay.

Respondent's Arguments

  • Respondents No. 2 and 3 conceded, in their reply, that as per a clarification issued by the Government of India, the petitioner was entitled to the refund.
  • The refund would be released within 60 days from the date of landing of the application on the GST portal.

Court Order/Findings

  • Taking note of the respondents' own concession that the refund was due in view of the Government of India's clarification, the Division Bench directed that the needful be done within a period of 60 days from the date of receipt of a certified copy of the order.
  • The petition was disposed of on this basis, without any further adjudication being required since the entitlement itself was not disputed by the respondents.

Important Clarification

  • Where the department itself concedes, in its reply affidavit, that a refund is due pursuant to a Government of India clarification, courts will enforce time-bound release of the amount rather than remit the matter for a fresh round of adjudication.
  • A specific outer time limit (here, 60 days from receipt of the certified copy) gives the concession practical teeth and a benchmark against which delay can be tested.

Sections Involved

  • Section 54, CGST Act, 2017 — refund of tax, the provision under which the petitioner's refund application and the impugned rejection order arose.

Decision – In Favour of

The petition was disposed of in favour of the Assessee. The respondents conceded the petitioner's entitlement to refund in light of the Government of India's clarification, and the Court directed that the refund be processed within 60 days of receipt of the certified copy of the order.

Related Case Laws

No directly on-point case notes are currently published on this site.

Case Details

  • Court: High Court of Punjab and Haryana at Chandigarh
  • Case No.: CWP No. 25427 of 2022 (O&M)
  • CNR: Not available
  • Coram: Hon'ble Mr Justice G.S. Sandhawalia and Hon'ble Ms Justice Harpreet Kaur Jeewan
  • Decision Date: 7 November 2023
  • Disposal Nature: Disposed of - GST refund to be processed within 60 days per Government of India clarification

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