2023 (9) TMI 1128 - HC - GST

Refund in respect of goods exported by the taxpayer - HELD THAT - The petitioner (husband of the deceased tax payer) was advised to transfer the accumulated tax credit to a new GST number in respect of the same business. The petitioner (husband of the deceased tax payer) had thus taken the necessary steps to transfer the accumulated tax credit to a new GST number obtained in his name. However, subsequently, it was discovered that although he can utilize the transferred credit for discharge of further tax liabilities in respect of the said business, his claim for refund in cash cannot be processed, notwithstanding that the original tax payer was so entitled to such refund. The petitioner is not interested in carrying forward the accumulated tax for discharge of future liability, and is interested in obtaining the refund. He has since reversed the tax credit to the account of the deceased tax payer. The Petitioner will file fresh refund applications with his signature as the authorized signatory and husband of Late Smt. Malvinder Kaur Mujral. Matter restored back with direction to file fresh refund application and processing thereof.

Summary

Issues involved:
The issues involved in this case are the petitioner seeking directions for the refund of specific amounts for the Financial Years 2020-2021 and 2021-2022, related to goods exported by the deceased taxpayer, and the contention regarding the processing of the refund claims.

Refund Claim Processing Issue:
The deceased taxpayer was entitled to the refund of the claimed amount, but the petitioner, husband of the deceased taxpayer, faced delays in the processing of the refund claims. The respondent's counsel mentioned that heirs of a deceased taxpayer can transfer tax credit to a new GST registration if the business continues, allowing the credit to be used for liabilities but not for cash refunds. However, refunds can be permitted post court orders.

Transfer of Tax Credit Issue:
The petitioner, husband of the deceased taxpayer, was advised to transfer the tax credit to a new GST number, which he did. Despite being able to use the transferred credit for future tax liabilities, he encountered obstacles in obtaining a cash refund. The petitioner expressed disinterest in carrying forward the tax credit and emphasized the need for a refund, ultimately reversing the tax credit to the deceased taxpayer's account.

Previous Petitions Disposal:
Earlier petitions by the petitioner for different tax periods were disposed of by the Court with specific directions. The respondent's counsel requested the present petition to be disposed of in line with the directions issued in the previous petitions.

Court Directions:
The Court directed the petitioner to file fresh refund applications as the authorized signatory and husband of the deceased taxpayer. The respondents were instructed to process these applications and transfer the tax credit with applicable interest to the bank account linked to the specified GST number. The petitioner confirmed the operational status of both the GST number and the linked bank account.