2025 (9) TMI 1292 - HC - Customs

Refund claim for GST paid after notifications declared ultra vires; respondent asserts limitation from 19.05.2022 order

Patanjali Foods Limited Versus Deputy Commissioner of State Tax Wadi.

Petitioner sought refund of GST paid after notifications were declared ultra vires; respondent refused, relying on limitation beginning from the SC order ... Refund of duty (GST) already paid - Levy of GST on services rendered which was held as unconstitutional - import of certain goods on Cost, Insurance and Freight [CIF] basis - Reverse Charge - HELD THAT:- Since the order declaring notifications ultra virus attained finality, the petitioner approached the respondent for refund of tax paid by it. The request has been refused mainly on the ground of limitation. The argument is that the limitation would start from the date of the order passed by Supreme Court i.e. from 19.05.2022. Issue notice to the respondent, returnable on 3rd October, 2025. The petitioner paid GST for 2018-19 on imported goods brought in on a Cost, Insurance and Freight (CIF) basis. Because the supplier was a foreign entity, the Central and State Governments issued notifications imposing GST on the importer under the 'reverse charge' mechanism. Those notifications were challenged; a High Court declared them unconstitutional. The Supreme Court in Civil Appeal No. 1390 of 2022 (Union of India v. Mohit Minerals Pvt. Ltd.) dismissed the appeal on 19.05.2022, thereby upholding the prior order declaring both notifications 'ultra virus'. Relying on that final decision, the petitioner sought refund of the GST paid. The revenue refused the refund primarily on limitation grounds, contending limitation would begin from 19.05.2022 (the Supreme Court judgment date). Notice was issued to the respondent, returnable 3 October 2025; service of notice was waived on behalf of the respondent.