2023 (2) TMI 276 - HC - GST

Refund of unutilised Input Tax Credit - Annexure B was not complete in all respect, as was necessary for processing the refund - failure to upload the same at the time of filing of the application - period of October, 2020 to December, 2020 - HELD THAT - It is apparent that the rectified information as submitted by the petitioner was not taken into account by either of the concerned authorities while considering the petitioner s grievance regarding non-payment of its refund, as claimed. Thus, it was essential for the concerned authorities to examine the information as submitted by the petitioner and process its claim for refund in accordance with law. Clearly, the petitioner cannot be penalised for the inadvertent error in submitting an erroneous information against Column No. 7 of its form, which has since been rectified. Matter remanded to the Adjudicating Authority to consider the petitioner s response dated 07.06.2021 to the Show Cause Notice dated 22.05.2021 and to decide the matter afresh.

Summary

Issues:
1. Impugning orders dated 09.02.2022 and 17.06.2021 for non-release of unutilised Input Tax Credit.
2. Defect in refund application due to incomplete/inappropriate information in Annexure-B.
3. Rejection of refund application despite rectification of error.
4. Failure to consider rectified information by the concerned authorities.
5. Remand of the matter to Adjudicating Authority for fresh consideration.

Analysis:
The petitioner challenged the orders dated 09.02.2022 and 17.06.2021, seeking release of unutilised Input Tax Credit amounting to Rs. 4,28,400. The refund application filed by the petitioner was initially deemed defective due to incomplete/inappropriate information in Annexure-B. Despite rectifying the error and submitting a revised annexure, the application was rejected. The petitioner's appeal was also dismissed on grounds of incomplete information in Annexure-B. The High Court observed that the rectified information was not considered by the authorities, leading to the unjust denial of the refund claim.

The Court emphasized the authorities' duty to examine the information submitted by the petitioner and process the refund claim as per the law. It noted that penalizing the petitioner for a rectified inadvertent error was unjust. Consequently, the High Court set aside the impugned orders and remanded the matter to the Adjudicating Authority for fresh consideration based on the petitioner's response to the Show Cause Notice. The petitioner was permitted to submit a fresh copy of the revised annexure for review.

Furthermore, the Court directed the Adjudicating Authority to process the petitioner's refund application within four weeks. If there were any contemplations of rejecting the application, the petitioner must be given an opportunity to be heard. Ultimately, the petition was allowed on the mentioned terms, ensuring a fair review of the refund claim and rectified information provided by the petitioner.