2023 (11) TMI 665 - HC - GST

Refund of amount as claimed by the petitioner in terms of the provision of Section 142 of the Central Goods and Services Tax Act, 2017 - HELD THAT - In the event, the petitioner s application is rejected, the concerned officer shall pass a speaking order setting out the reasons for the same after affording the petitioner an opportunity to be heard. The respondent is bound down to the said statement. Petition disposed off.

Summary

Issues involved:
The issues involved in the judgment are the petitioner's claim for refund under Section 142 of the Central Goods and Services Tax Act, 2017 (CGST Act) for tax paid under the Central Sales Tax Act, 1956 on goods sold before the GST regime rollout and returned by customers within six months.

Refund Claim under Section 142 of the CGST Act:
The petitioner filed a petition seeking a direction for the respondent to refund the amount claimed under Section 142 of the CGST Act. The petitioner alleged that they had submitted an application on 28.06.2018 under Section 142 of the CGST Act for tax paid under the Central Sales Tax Act, 1956 on goods sold before the GST regime and returned within six months from the appointed date. Despite the respondent acknowledging receipt of the application on 02.07.2018, no steps were taken to process the refund. The court disposed of the petition with directions for the respondent to consider the application and process the refund with applicable interest, or provide reasons for rejection after giving the petitioner an opportunity to be heard.

Conclusion:
The High Court of Delhi, comprising Hon'ble Mr. Justice Vibhu Bakhru and Hon'ble Mr. Justice Amit Mahajan, disposed of the petition with directions for the respondent to process the petitioner's refund claim under Section 142 of the CGST Act in accordance with the law. The court reserved all rights and contentions of the parties involved in the matter.