Tax Refund Challenge Upheld: Authorities Must Reconsider Application Fairly and Promptly Within Prescribed Guidelines

HC allowed petitioner's challenge to tax refund order. Authorities must reconsider refund application within prescribed timeline, following specific circular guidelines. Impugned order was quashed, directing petitioner to submit fresh refund claim within three weeks. Respondent instructed to process application promptly without unreasonable rejection.

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Issues:
The legality and validity of the order rejecting the claim for refund under Section 54(5) of the CGST Act, 2017 without providing reasons.

Summary:
The petitioner, engaged in providing telecommunication services, was merged with another company and migrated to the GST regime. Excess tax payments were made in Gujarat, and refund applications were filed. The impugned order rejecting the refund claim lacked reasons. The petitioner relied on orders from other High Courts supporting the refund claim. The respondent argued for the petitioner to file an appeal under Section 107 of the CGST Act. The Court directed the petitioner to make a fresh refund application within three weeks, following a specific circular. The authorities were instructed to dispose of the application promptly. Consequently, the impugned order was quashed, and the petition was allowed.

Separate Judgement:
No separate judgment was delivered by the judges.

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