2024 (9) TMI 1296 - HC - GST

Refund of IGST which was lying in the electronic cash register - rejection on the ground that provisions of Sub-section (6) of Section 49 of the Central Goods and Services Tax Act, 2017 were not complied with - HELD THAT - The respondents cannot withhold the refund, which has been directed to be issued by the appellate authority. The Order in Appeal dated 21.01.2024 is required to be implemented unless the same is otherwise stayed by a superior forum. Concededly, in the present case, the respondents have not preferred any appeal or any proceedings to challenge the Order in Appeal dated 21.01.2024. It is impermissible for the respondents to simply ignore the said order. The respondents are directed to forthwith process the claim for refund in terms of the Order in Appeal dated 21.01.2024 along with applicable interest in accordance with law - Petition allowed.

Summary

Issues:
1. Refund of Integrated Goods and Services Tax amounting to Rs. 28,84,115
2. Compliance with provisions of Sub-section (6) of Section 49 of the Central Goods and Services Tax Act, 2017
3. Implementation of the Order in Appeal dated 21.01.2024 for grant of refund

Analysis:

1. The petitioner filed a petition seeking a refund of Rs. 28,84,115 lying in the electronic cash register of the deceased proprietor's concern. The widow of the deceased applied for the refund, but the claim was rejected by the Adjudicating Authority. However, the Appellate Authority overturned the decision, directing the refund to be made to the legal heir of the deceased as per the succession certificate issued by the Court.

2. The Adjudicating Authority issued a Show Cause Notice challenging the refund application, citing non-compliance with Section 49(6) of the CGST Act, 2017. The petitioner responded, but the refund was not processed. Despite a reminder and subsequent responses, the refund was not granted, leading to the filing of the present petition.

3. The High Court held that the respondents were obligated to implement the Order in Appeal dated 21.01.2024 directing the refund, as no appeal or challenge was made against it. The Court emphasized that the respondents cannot ignore a lawful order for refund, citing previous judgments. Consequently, the petition was allowed, directing the immediate processing of the refund along with applicable interest as per the Order in Appeal.

This detailed analysis covers the issues of refund claim, compliance with statutory provisions, and the implementation of the appellate order, providing a comprehensive overview of the judgment.