Tax Refund Application Granted: Manual Filing Allowed When Digital Portal Closes, Ensuring Taxpayer Rights and Administrative Flexibility

The HC allowed a tax refund application by permitting manual filing of documents due to portal closure. The court directed the petitioner to submit a comprehensive refund application with supporting documents within two weeks, and instructed the tax authorities to review the application within six weeks, ensuring procedural barriers do not impede legitimate tax claims.

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Issues involved: Application for refund of Input Tax Credit, deficiency memo, portal closure, manual filing, statutory compliance.

Summary:

Application for refund of Input Tax Credit:
The petitioner filed a Writ Petition under Article 226 of the Constitution of India seeking relief for the refund of Input Tax Credit amounting to Rs. 40,10,932 for the period from April 2018 to March 2019. The petitioner requested the respondent authorities to process the application for refund or alternatively, to allow manual filing of the necessary documents due to portal closure preventing online submission.

Deficiency memo and portal closure:
A deficiency memo was issued to the petitioner on 31.12.2019, stating that no supporting documents were attached to the refund application. The petitioner was advised to rectify the deficiencies, but due to portal closure, a fresh application could not be filed online. The respondent authorities insisted on online filing and pointed out the absence of the Letter of Undertaking (LUT) required under the IGST Act, 2017.

Manual filing and statutory compliance:
The Court acknowledged the petitioner's inability to rectify deficiencies online due to portal closure and emphasized the importance of procedural rules not impeding justice. The Court directed the petitioner to manually file a refund application with the necessary documents within two weeks before the Competent Authority. The Competent Authority was instructed to consider the application within six weeks, ensuring that manual filing would not be a ground for rejection.

Conclusion:
The Writ Petition was disposed of, granting the petitioner the opportunity to manually file the refund application and addressing the deficiencies within a specified timeframe. The Competent Authority was tasked with reviewing the application and making a decision in accordance with the law. No costs were awarded, and pending miscellaneous petitions were closed as a result of the judgment.

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