HC allowed fresh application for refund as deficiency memo was issued by Dept.

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  • Last Updated on 1 August, 2022

Deficiency memo

Case Details: Vodafone Mobile Services Ltd. v. Union of India - [2022] 140 taxmann.com 650 (Madhya Pradesh)

Judiciary and Counsel Details

    • Sheel Nagu & Maninder S. Bhatti, Jj.
    • Bharat Raichandani, Adv. for the Petitioner.
    • Himanshu Shrivastava, Adv. for the Respondent.

Facts of the Case

The petitioner filed an application for refund of excess tax paid. The department issued a deficiency memo by which the petitioner was required to rectify the deficiency within the stipulated period. But the petitioner could not rectify the deficiency and the petitioner’s application for refund was rejected. It filed writ petition against the same and submitted that no deficiency memo issued to it.

High Court Held

The Honorable High Court observed that the application was required to be scrutinized within a period of 15 days and in the event of any deficiency, those were required to be informed to the assessee. However, in the instant case, deficiency memo issued by the department was beyond statutory period of 15 days provided in Rule 90(2) of CGST Rules, 2017 and secondly deficiency memo itself was not communicated to the petitioner. Therefore, the Court allowed the petitioner to fresh application for refund of excess tax within 30 days.

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