CA Certificate not required to claim refund of unutilized ITC

[CA Bimal Jain]

The Hon’ble Delhi High Court in SVERA AGRO LIMITED VERSUS COMMISSIONER OF CENTRAL TAX AND GST, GST DELHI NORTH COMMISSIONERATE - 2024 (3) TMI 329 - DELHI HIGH COURT, quashed the deficiency memo requiring the assessee to furnish CA certificate for seeking refund of unutilized ITC, since proviso to Rule 89(2)(m) waive the requirements of furnishing CA certificate in case refund is sought for unutilized ITC.

Facts:

M/s. Svera Agro Ltd. (“the Petitioner”), filed a refund application for claiming refund of unutilized ITC, which was rejected by the Revenue Department by issuing deficiency memos requiring the Petitioner to furnish a certificate issued by the CA as per Rule 89 (2)(m) of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”).

Aggrieved by the deficiency memo the Petitioner filed writ Petition before the Hon’ble Delhi High Court.

The Petitioner contended that, the refund sought by the Petitioner is of unutilized ITC, which is covered under Section 54(3) of the CGST Act. In such case, the law does not mandates the applicant to furnish CA certificate.

Issue:

Whether a CA certificate is required in case of refund of unutilized Input tax credit?

Held:

The Hon’ble Delhi High Court in SVERA AGRO LIMITED VERSUS COMMISSIONER OF CENTRAL TAX AND GST, GST DELHI NORTH COMMISSIONERATE - 2024 (3) TMI 329 - DELHI HIGH COURT held as under:

• Observed that, the case of the Petitioner pertains to refund of unutilized Input Tax credit covered under Section 54(3) of the CGST Act.
• Noted that, Rule 89(2) of the CGST Rules, mandates filing of documentary evidence to establish that refund is due to the Applicant and clause (l) provides that the Applicant is required to furnish CA certificate if the refund exceed Rs.2 lakh. However, the proviso to Rule 89(2)(m) stipulates that, CA certificate is not required to be furnished if Applicant seeks refund of unutilized ITC.
• Held that, the deficiency memos issued to the Petitioner, requiring to furnish a certificate of the CA is not sustainable, accordingly set aside.

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