2024 (5) TMI 603 - HC - GST

Refund with interest - statutory period of 60 days as mentioned in section 54 of CGST Act has already elapsed - HELD THAT - Section 54, sub section (7), mandates that proper officer shall pass an order within 60 days from the date of the receipt of the application complete in all respects - In view of the Board already having issued the Circular No. 125/44/2019-GST and keeping in view the provisions of Section 54 (7) of the Act, the proper officers have to comply with the said provisions and accordingly, no further directions are called for in the said matter - it was held in the Circular that ' all tax authorities are advised to issue the final sanction order in FORM GST RFD-06 and the payment order in FORM GST RFD-05 within 45 days of the date of generation of ARN, so that the disbursement is completed within 60 days.' Insofar as the case of the petitioner is concerned, petitioner had filed refund claim on 22.01.2024 and as per the petitioner, till date no deficiency memo has been issued to the petitioner. Since the statutory period of 60 days has already elapsed, the proper officer is directed to expedite the processing of the application for refund and dispose of the same within a period of two weeks in accordance with law. The proper officer shall also take into account the Circular of the Board referred to above as also the provisions of the Act, while passing the order. Petition disposed off.

Summary

Issues involved:
Petitioner seeks a direction for refund u/s 54 of the Central Goods and Service Tax Act, 2017 and guidelines for timely processing of refund applications.

Refund Processing and Timely Disposal:
The Court referred to Section 54(7) which mandates the proper officer to pass an order within 60 days of receiving a complete application. Circular No. 125/44/2019-GST provides modalities for refund applications, including uploading necessary documents on the common portal. The Circular also states that if a refund is not issued within 60 days, interest at 6% must be paid until the amount is credited to the applicant's bank account.

Compliance with Circular and Statutory Provisions:
The Court emphasized that proper officers must adhere to the Circular and Section 54(7) of the Act. No further directions are necessary as the Circular already provides guidelines for processing refund applications within the stipulated time frame.

Specific Case of the Petitioner:
The petitioner filed a refund claim on a specific date and claimed that no deficiency memo has been issued yet. Since the 60-day period has lapsed, the proper officer is directed to expedite the processing of the refund application and dispose of it within two weeks, considering the Circular and statutory provisions.

Disposition and Further Remedies:
The petition is disposed of with the direction for the proper officer to process the refund application within the specified timeline. The petitioner is allowed to seek further legal remedies if unsatisfied with the decision of the proper officer.