HC Directed Dept. to Reconsider Refund Claim of Unregistered Person Due to Evolved Refund Policy

Case Details: C.P. Ravindranath Menon v. Deputy Commissioner of State Tax - [2023] 151 taxmann.com 458 (Bombay)

Judiciary and Counsel Details

• • Nitin Jamdar & Abhay Ahuja, JJ.
  • Ms Sangeeta Yadav for the Appellant.
  • Abhijeet Mangade for the Respondent.

Facts of the Case

The petitioner was an unregistered person who entered into an agreement for sale of residential flat. The petitioner submitted that pursuant to proceedings that took place under agreement, he was entitled for refund of taxes paid. He applied for refund but the department rejected the prayer of the petitioner by stating that persons such as the petitioners were not entitled for refund of the GST in respect of such transactions. He filed writ petition and alleged breach of principles of natural justice.

High Court Held

The Honorable High Court noted that there have been substantial changes in the procedure governing the application for refund by unregistered persons and this position was not in existence when impugned order was passed. Since policy had now been evolved governing application for refund, the opportunity was to be given to assessee for reconsidering claim for refund. Therefore, it was held that the impugned order was quashed and set aside and the application of the petitioner was restored.