2023 (3) TMI 158 - HC - GST

Rejection of refund request - educational institution - sanction of refund for the tax period April, 2020 to August, 2020, along with interest computed from the date of filing of the original application for refund - applicability of circular dated 17.06.2021 (Circular No. 151/07/2021-GST) as ultra vires to the provisions of entry at Serial No. 66(a) read with Para 2(y) of the Notification No. 12/2017-CTR - fee charge for FMGE Screening Test as a fee for accreditation. HELD THAT - Issue notice. List on 22.03.2023.

Summary

Issues:
1. Petitioner's challenge to rejection of refund requests and seeking directions for refund with interest.
2. Petitioner's claim of being an educational institution and seeking exemption under specific notifications.
3. Petitioner's challenge to circular as ultra vires under DGST Act.

Analysis:
1. The petitioner filed petitions challenging the rejection of refund requests and sought directions for refund with interest from the respondents. The petitioner also challenged a circular as ultra vires under the DGST Act. The petitioner prayed for directions to sanction the refund for a specific tax period along with interest. The circular in question was dated 17.06.2021 (Circular No. 151/07/2021-GST). The petitioner's challenge encompassed orders dated 30.06.2022, 28.10.2022, 21.11.2022, and 22.11.2022 where the refund requests were turned down.

2. The petitioner's challenge in the petitions was three-fold. Firstly, the petitioner claimed to be an educational institution entitled to exemption under Entry 66 of a specific notification. Secondly, the petitioner argued for exemption from tax on services related to conducting examinations under a different notification. Thirdly, the petitioner contested the circular dated 17.06.2021, particularly regarding the characterization of a fee for FMGE Screening Test as a fee for accreditation. The petitioner's contentions were based on specific provisions and notifications under the DGST Act.

3. The court issued notice on the issues raised by the petitioner. The respondent's counsel accepted the notice and requested time to file a counter-affidavit. The court allowed four weeks for the respondent to file the counter-affidavit and directed any rejoinder to be filed within one week thereafter. The case was listed for further proceedings on 22.03.2023. The court's decision indicated a willingness to hear both sides and proceed with the case based on the arguments presented by the petitioner and the response expected from the respondent.