Refund Appeal Procedure during the course of Merger of companies

[Ashiesh Prremji]

Dear Experts,

I am in a situation, wherein the the dealer (hereinafter referred as Transferor company) filed a appeal in June 2021 against the GST Refund rejection. When the appeal was filed, the Transferor company was under the scheme of Merger with appointed date of April 01, 2021. Now, the Approval for Merger in April 2022 been issued by Regional Director effective the appointed date.

Now, the query is, since the Transferor company has already filed appeal having admitted status on GSTN but the appellate authority hasn't yet given the date of hearing and thus no order for the said appeal is passed and by now since the Merger order has already come. What to be done for -

1. The appeal which already been filed, and

2. Since the refund has been rejected, the corresponding ITC, which been debited while filing Refund application, is also not there in Electronic Credit ledger.

In such situation, How the appeal procedure will move on and since with the merger order, Transferor company stands dissolved, what's the way out?

Is it possible now (after the above said appeal), to file Undertaking for PMT-03 to get the ITC back in ECL?

You guidance will be highly helpful.

Thanks, Ashiesh

AI Summary

Merger Disrupts GST Refund Appeal: Guidance Sought on ITC Recovery and Compliance Steps for New Entity A company undergoing a merger is facing issues with a GST refund appeal filed before the merger was approved. The merger, effective from April 2021, was approved in April 2022. The transferor company, now dissolved, had its refund rejected, affecting its electronic credit ledger. The query seeks guidance on how to proceed with the appeal and reclaim the input tax credit (ITC). Responses suggest notifying the GST department about the merger, potentially canceling the appeal, and transferring the credit to the new company. The discussion emphasizes the procedural steps to ensure compliance and recovery of the ITC.