2024 (12) TMI 922 - HC - GST

Court Orders Quick Resolution & Accountability for Delayed Tax Refunds; GST Commissioner to Investigate & Report in 3 Months.

The HC of Bombay addressed the delay in processing refund applications since 2014. The Respondents were ordered to resolve the applications within four ... Time limitation - refund claim - Delay in processing refund applications - Inordinate delay in verification by Adjudicating Authority - HELD THAT:- Though no time limit was set for verification, it was expected that it would be completed within a reasonable period of two to three months. The Original Adjudicating Authority has not bothered to verify and comply with the Commissioner (Appeals) order dated 28 May 2018 for six years, which is entirely unacceptable. The concerned Original Adjudicating Authority is directed to comply with the directions in the order dated 28 May 2018 within four weeks from today. The Commissioner, GST, further directed to investigate the matter, determine the reasons for this inordinate delay, and fix responsibility on the concerned official/s. After assigning responsibility, the loss to the public exchequer must be recovered from the officer/s concerned. Petition disposed off. Issues: Delay in processing refund applications; Accountability of officers for delay; Compliance with directions of Commissioner (Appeals); Inordinate delay in verification by Adjudicating Authority; Investigation into delay and fixing responsibility; Compliance report deadline.In this judgment, the High Court of BOMBAY addressed the issue of delay in processing refund applications filed by the Petitioner in 2014. The Court noted that despite the applications being pending since 2014, they had not been processed. The Respondents assured that the applications would be disposed of within eight weeks. However, considering the prolonged delay, the Court directed that the applications be disposed of within four weeks from the date of the judgment. The Court emphasized that interest on refunds should be granted from the date of the applications. Additionally, the CGST Commissioner was directed to investigate the causes of the delay and hold accountable the officers responsible for the inordinate delay. The Court further mandated the recovery of any additional amounts due to the delay from the responsible officers.Regarding another application at Exhibit 'A-4,' the Commissioner (Appeals) had allowed the Petitioner's appeal for a refund of Service Tax paid after 1 March 2011. However, the matter was remitted to the Original Adjudicating Authority for verification, which had not been done for six years. The Court found this delay unacceptable and directed the Adjudicating Authority to comply with the directions within four weeks. The Commissioner, GST, was tasked with investigating the delay, determining the reasons, and fixing responsibility on the concerned officials. The Court ordered the recovery of any losses to the public exchequer from the responsible officers.Furthermore, the Court instructed the Commissioner, GST, to conduct inquiries and fix responsibilities within three months, following principles of natural justice. A compliance report detailing the actions taken was required to be filed in Court by a specified deadline. The judgment concluded by disposing of the petition and setting a deadline for the compliance report submission. All parties involved were directed to act based on the authenticated copy of the order.