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2024 (4) TMI 1003 - HC - GSTRejection of refund application - unutilised input tax credit - Without following the mandate of circular Circular No.135/05/2020 - GSTR 1, GSTR 3B and GSTR 2A returns does not match with GSTR Returns - HELD THAT - The petitioner asserts that all relevant documents, including invoices raised by the supplier and invoices issued by the petitioner in respect of outward supplies were submitted. The respondent should have examined the application in accordance with Section 54 of applicable GST enactments, the rules framed thereunder and the Circular referred to above. Since such exercise has not been undertaken properly, the matter requires reconsideration. Thus, the impugned order is set aside and the matter is remanded to the respondent for reconsideration. The petitioner is permitted to submit additional documents within a period of three weeks from the date of receipt of a copy of this order. Upon receipt thereof, the respondent is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh order within two months from the date of receipt of additional documents from the petitioner. The Writ Petition is disposed of on the above terms. There shall be no order as to costs.
Issues involved: Challenge to rejection of application for refund of unutilised input tax credit.
Summary: The petitioner, engaged in manufacturing and supplying cotton yarn, sought a refund of unutilised input tax credit due to higher tax rates on inputs than outputs. The refund application was rejected citing mismatch in inverted turnover with GSTR returns. Petitioner argued submission of all relevant documents and non-compliance with Circular No.135/05/2020 - GST. Respondent claimed petitioner's failure to respond to rejection notice led to the refund application rejection. The court found the rejection inadequate as it did not comply with Section 54 of GST enactments and related rules. The order was set aside, and the matter remanded for reconsideration. Petitioner allowed to submit additional documents within three weeks for a fresh decision within two months. Writ petition disposed of with no costs incurred.
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