HC Directed Petitioner to Make Fresh Application for Refund Since Refund was Rejected Without Reasons

Case Details: Vodafone Mobile Services Ltd. v. Union of India - [2023] 153 taxmann.com 355 (Gujarat)

Judiciary and Counsel Details

• • Biren Vaishnav & Devan M. Desai, JJ.
  • Bharat Raichandani, Anshul Jain & Aditya R. Parikh for the Petitioner.
  • Raj Tanna & Priyank P Lodha for the Respondent.

Facts of the Case

The petitioner who was engaged in providing telecommunication services across India. There were instances where, excess payment of tax was made in the State of Gujarat. The petitioner applied for refund of excess tax after having made good the short payment of tax through the annual returns. However, the application for refund was rejected without assigning any reasons and it filed writ petition seeking relief from the High Court.

High Court Held

The Honorable High Court noted that the order rejecting the claim for refund under Section 54(5) of the CGST Act, 2017 was without any reasons and it was evident from the text of the order itself. Therefore, the order rejecting refund was liable to be set aside and the Court directed the petitioner to make a fresh application for refund in terms of Circular No.125/44/2019-GST dated 18.11.2019. The Court further directed the authorities to dispose of the same on merits in accordance with law as early as possible, preferably within a period of four weeks thereafter.