GST Refund Rejection Quashed as CGST Rules Omitted Without Saving Clause | HC

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  • Last Updated on 19 December, 2025

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CGST Rules omission

Case Details: JJ Plastalloy (P.) Ltd. vs. Union of India [2025] 181 taxmann.com 386 (Gujarat)

Judiciary and Counsel Details

  • A.S. Supehia & Pranav Trivedi, JJ.
  • Anand Nainawati for the Petitioner.
  • Utkarsh R. Sharma for the Respondent.

Facts of the Case

The petitioner challenged the rejection or refusal of IGST export refund claims by the Department of Revenue. The petitioners had submitted applications for IGST refunds and had received show-cause notices regarding the claims, with some orders already passed before the issuance of the notification. It was contended that, due to the omission, the provisions were rendered redundant ab initio, applying to all pending proceedings and pre-notification orders that had not attained finality. They argued that as a result, the rejection or refusal of their refund claims lacked any statutory basis and should be quashed. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the omission of Rules 89(4B) and 96(10) from the CGST Rules, by Notification No. 20/2024, dated 08-10-2024, without any saving clause, rendered those provisions redundant ab initio. The Court emphasised that this omission extended to all pending proceedings and pre-notification orders that had not been finalised due to appeals or other procedural delays. It noted that the Appellate Tribunal under the GST regime had not been constituted, meaning that no further statutory remedy was available. Therefore, orders-in-appeal could not attain finality. It was directed that the petitioners were entitled to IGST refunds under Section 54 of the CGST Act.

List of Cases Reviewed

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied