2019 (8) TMI 86 - HC - GST

Refund of excess payment of tax liabilities - Petitioner points out that on account of the glitches in the system, the Petitioner ended up paying in excess of its tax liabilities leading to an excessive cash outflow of a huge amount which works out to nearly ₹ 923 crores - HELD THAT - The Court directs the Respondents to file an affidavit specific to the above issue not later two weeks from today with an advance copy to the learned counsel for the Petitioner, who may file a response thereto before the next date. List on 7th November, 2019.

Summary

Issues:
1. Claiming refund under Section 54 of the CGST Act, 2017 due to non-operationalization of GSTR Forms.
2. Glitches in the system leading to excessive tax payments and cash outflow.
3. Mechanism for refund of excessive amount paid.
4. Directions for filing affidavit and response.

Analysis:
1. The Court initially heard arguments on 20th January, 2019, regarding the petitioner's claim for refund under Section 54 of the CGST Act, 2017, due to the non-operationalization of GSTR Forms-2, 2A & 3. The respondents sought time to seek instructions on the mode of claiming refund, and the matter was listed for further hearing on 14th February, 2019.

2. Subsequently, on 14th February, 2019, the respondents requested an adjournment to await instructions from the GST Policy Wing. When the case was taken up on 1st May 2019, the Court directed that the returns filed by the petitioner would be subject to the final outcome of the writ petition, releasing it from the category of 'Part Heard'.

3. In the recent proceedings, a pass over was requested by the respondents due to the Board's position, indicating a potential delay in hearing the matter. The petitioner's counsel highlighted that system glitches had resulted in the petitioner overpaying taxes significantly, amounting to approximately ?923 crores. The Court had earlier asked the respondents to explore potential mechanisms for the petitioner to claim a refund of this excess amount.

4. Consequently, the Court directed the respondents to submit a specific affidavit addressing the refund issue within two weeks, with a copy provided to the petitioner's counsel for response before the next hearing scheduled for 7th November, 2019. This step aims to address the petitioner's concerns regarding the excessive cash outflow and seek a resolution through a structured legal process.