Accumulated ITC refund claim amid GST portal upload errors and missing shipping bills - writ allowed directing verification and refund processing

Whether the petitioner was entitled to refund of accumulated ITC despite portal errors and alleged non-compliance with Rule 89(5). The HC found the refund claim complied with Circular No.125/44/2019-GST except for non-uploading of shipping bills due to portal size constraints; the petitioner made bona fide attempts to re-file after the earlier RFD-06 rejection and helpdesk error guidance, and thereafter submitted a fresh RFD-01 with supporting documents. Outcome: writ allowed and respondents directed to verify the submitted documents and process the refund claim accordingly.

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Issues: (i) Whether the petitioner is entitled to refund of IGST amounting to Rs. 25,09,124/- claimed for zero-rated supplies for the period October 2021 to May 2022, notwithstanding prior rejection due to technical errors on the GST portal and procedural non-compliance, and whether the respondents should be directed to verify and process the refund application on merits.

Analysis: The refund claim was filed under Section 54(3) of the Central Goods and Services Tax Act, 2017 and a supplementary application was filed under the category "Any Other" after earlier rejection and re-crediting to the electronic credit ledger. The respondents raised procedural objections including non-compliance with Rule 89(5) of the CGST Rules and portal-related filing errors. Prior coordinate-bench precedent addresses entitlement to refund where substantive conditions are satisfied and denial results from technical or electronic-system lacunae. The petitioner filed an affidavit evidencing reversal of credit through Form GST DRC-03 and undertook to furnish documents; the petitioner also undertook to file a fresh application for verification so that interest may be calculated from the date of such fresh application. The respondents were directed to verify documents and decide the fresh application on merits without raising limitation objections.

Conclusion: The petitioner is entitled to have the refund claim of Rs. 25,09,124/- verified and processed on merits. The respondents are directed to accept a fresh application (electronic or manual), verify the supporting documents, and pass an appropriate order within six weeks from receipt of the order; no objection on limitation shall be raised and interest shall be calculated from the date of the fresh application.

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