2023 (11) TMI 873 - HC - GST

GST Refund Claim - denial on the premise that the appellant has not replied to the SCN - time limitation - HELD THAT - When the matter was taken up for hearing, the learned standing counsel appearing for the respondents produced a copy of the notification No.53/2023-CENTRAL TAX dated 02.11.2023 issued by the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs, New Delhi, wherein, time is granted to file an appeal against the order in Form GST APL-01 in accordance with sub section (1) of section 107 of the Central Goods and Services Tax Act, 2017, on or before 31st day of January 2024, to the taxable persons, who could not file the same within the time stipulated. In reply, the learned counsel appearing for the appellant sought liberty to the appellant to approach the appellate authority for filing necessary appeal. Thus, liberty is granted to the appellant to approach the appellant authority, if so advised - appeal disposed off.

Summary

Issues involved:
The issues involved in the judgment are related to the rejection of GST refund claim, compliance with notification No.16/2020, dismissal of appeal on the ground of limitation, and the grant of liberty to approach the appellate authority for filing necessary appeal.

Rejection of GST Refund Claim:
The appellant, a proprietorship concern engaged in the business of manufacturing and exporting apparels, applied for a refund of Rs. 7,39,532 for exports made between October 2019 and March 2020. The second respondent rejected the refund claim on the basis of non-compliance with a show cause notice issued on 16.02.2021 regarding Notification No.16/2020. The first respondent also dismissed the appeal challenging the rejection. The writ appeal was filed against the dismissal of the appeal, which was ultimately disposed of by granting liberty to the appellant to approach the appellate authority.

Compliance with Notification No.16/2020:
The appellant was issued a show cause notice by the second respondent to upload compliance documents for Notification No.16/2020. Failure to respond to this notice led to the rejection of the GST refund claim. The appellant's appeal against this rejection was dismissed by the first respondent on the grounds of limitation, which prompted the filing of the writ appeal.

Dismissal of Appeal on the Ground of Limitation:
The writ appeal was filed by the appellant after their appeal against the rejection of the GST refund claim was dismissed by the first respondent on 26.08.2022 due to being time-barred. The High Court granted liberty to the appellant to approach the appellate authority for filing the necessary appeal, thereby disposing of the writ appeal without costs.

Grant of Liberty to Approach Appellate Authority:
During the hearing, the learned standing counsel for the respondents produced a notification granting time to file an appeal against the order in Form GST APL-01 by 31st January 2024 for taxable persons who could not file within the stipulated time. The appellant was granted liberty to approach the appellate authority for filing the necessary appeal in accordance with the notification.

The judgment provides insights into the rejection of a GST refund claim, compliance requirements under Notification No.16/2020, dismissal of an appeal on the ground of limitation, and the subsequent grant of liberty to the appellant to pursue further appeal options.