2024 (10) TMI 962 - HC - GST

Seeking transitional credit of the input tax available under the VAT Act - only contention of the respondent-State is that, there should be a refund application filed pursuant to Annexure- P/15 - HELD THAT - There was a refund of Rs. 5,38,20,214/- which was sanctioned as payable to the petitioner, which also was unrelated to the input tax sought, for transitional credit in the GST period. The withholding of Rs. 32,29,195/- was only by reason of the additional demand, which would have been forfeited if the dis-allowance of the input tax claim was upheld. Admittedly, the input tax claimed was allowed and withholding of the refund amounts, to that extent, has to be now disbursed as per sub-section (12) of Section 54 of the CGST Act. There is no requirement for filing of refund application, since already a major portion of the refund sanctioned under Annexure-P/15 has been refunded to the petitioner. The refund shall be made with interest as applicable within a period of one month from the date of uploading of the judgment. The writ petition stands disposed of.

Summary

The High Court of Patna ruled in favor of the petitioner regarding the withholding of a refund amount under the CGST Act. The petitioner, a registered dealer, sought transitional credit under the CGST Act, which was initially disallowed but later allowed on remand. The court held that the withheld amount must be refunded to the petitioner along with interest, as per Section 54(12) of the CGST Act. The court rejected the respondent's argument that a separate refund application was required, stating that the refund was unrelated to the input tax claimed for transitional credit. The court ordered the refund to be disbursed within one month from the date of the judgment.