Tax Refund Claim Under Section 142 of CGST Act: Authorities Must Process or Provide Reasoned Rejection with Hearing

HC directed tax authorities to process petitioner's refund claim under Section 142 of CGST Act for tax paid on goods sold before GST regime and returned within six months. Respondent must either process the refund with applicable interest or provide reasoned rejection after hearing the petitioner, while reserving all parties' rights and contentions.

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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.

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