Tax Refund Claim Under Section 142 of CGST Act: Authorities Must Process or Provide Reasoned Rejection with HearingHC directed tax authorities to process petitioner's refund claim under Section 142 of CGST Act for tax paid on goods sold before GST regime and returned within six months. Respondent must either process the refund with applicable interest or provide reasoned rejection after hearing the petitioner, while reserving all parties' rights and contentions. Issues involved:
The issues involved in the judgment are the petitioner's claim for refund under Section 142 of the Central Goods and Services Tax Act, 2017 (CGST Act) for tax paid under the Central Sales Tax Act, 1956 on goods sold before the GST regime rollout and returned by customers within six months.

Refund Claim under Section 142 of the CGST Act:
The petitioner filed a petition seeking a direction for the respondent to refund the amount claimed under Section 142 of the CGST Act. The petitioner alleged that they had submitted an application on 28.06.2018 under Section 142 of the CGST Act for tax paid under the Central Sales Tax Act, 1956 on goods sold before the GST regime and returned within six months from the appointed date. Despite the respondent acknowledging receipt of the application on 02.07.2018, no steps were taken to process the refund. The court disposed of the petition with directions for the respondent to consider the application and process the refund with applicable interest, or provide reasons for rejection after giving the petitioner an opportunity to be heard.

Conclusion:
The High Court of Delhi, comprising Hon'ble Mr. Justice Vibhu Bakhru and Hon'ble Mr. Justice Amit Mahajan, disposed of the petition with directions for the respondent to process the petitioner's refund claim under Section 142 of the CGST Act in accordance with the law. The court reserved all rights and contentions of the parties involved in the matter. Refund of amount as claimed by the petitioner in terms of the provision of Section 142 of the Central Goods and Services Tax Act, 2017 - HELD THAT:- In the event, the petitioner s application is rejected, the concerned officer shall pass a speaking order setting out the reasons for the same after affording the petitioner an opportunity to be heard. The respondent is bound down to the said statement. Petition disposed off. CONSULTING ROOMS PRIVATE LIMITED Versus THE COMMISSIONER OF STATE TAX DEPARTMENT OF TRADE AND TAXES NEW DELHI
GST
2023 (11) TMI 665 - DELHI HIGH COURT - TMI
DELHI HIGH COURT - HC
Dated:- 2-11-2023
W. P. (C) 4209/2023 & CM No. 56087/2023 - -
GST
HON'BLE MR. JUSTICE VIBHU BAKHRU And HON'BLE MR. JUSTICE AMIT MAHAJAN For the Petitioner : Ms. Shubhangi Gupta, Ms. Priyanka Rathi, Mr. Ashwini Chandrasekaran & Ms. Disha G, Advs. For the Respondent : Mr. Rajeev Aggarwal, ASC with Mr. Aadish Jain, Adv. ORDER 1. The petitioner has filed the present petition, inter alia, praying that the respondent be directed to refund the amount as claimed by the petitioner in terms of the provision of Section 142 of the Central Goods and Services Tax Act, 2017 (hereafter 'the CGST Act'). The petitioner claims that it had filed an application on 28.06.2018 under Section 142 of the CGST Act in respect of the tax paid under the Central Sales Tax Act, 1956 in respect of the goods that were sold prior to roll out of the GST regime and were returned by the customers within a period of six months from the appointed date. The petitioner claims that the respondent had acknowledged the receipt of the said application on 02.07.2018 but has not taken any steps to process the refund. 2. Mr. Rajeev Aggarwal, learned counsel appearing for the respondent submits that the respondent shall consider the petitioner's application and process the refund along with the applicable interest in accordance with law. In the event, the petitioner's application is rejected, the concerned officer shall pass a speaking order setting out the reasons for the same after affording the petitioner an opportunity to be heard. The respondent is bound down to the said statement. 3. The petition is disposed of in the aforesaid terms. 4. All rights and contentions of the parties are reserved.
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