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

GST refund appeal continuation during corporate merger may remain in transferor's name; credits transferable after intimation.
Appellate proceedings filed by the transferor before the merger's effective date continue in the transferor's name. If the transferee assumed assets and liabilities and informed the tax department, the transferee may claim transferred credits. Alternatively, where refund pursuit is abandoned, the transferor can seek restoration of the debited amounts to the Electronic Credit Ledger, submit PMT-03, file ITC-02 to transfer credit to the resultant company, and then cancel the transferor's registration for transfer of business.