Mukesh Incense Enterprises Pvt. Ltd Vs Union of India & Ors (Bombay High Court)
Summary :The case concerns a challenge to orders dated 23 June 2020 and 18 August 2021, by which the petitioner’s refund application under Section 54(3) of the CGST Act and the subsequent appeal were rejected. The petitioner also sought a declaration that Rule 90(3) of the CGST and SGST Rules is ultra vires Section 54(3). The petitioner relied on the Gujarat High Court’s ruling in Darshan Processors, which held that the limitation period under Rule 90(3) should be computed from the date of the original refund application rather than from a subsequent application filed after addressing deficiencies. It was submitted that multiple High Courts have taken a similar view and that adopting this interpretation would avoid conflict with the parent statute.
The Court noted that constitutional challenges to rules must be approached cautiously and only when necessary. It further observed that the authorities had not considered the Darshan Processors ruling or similar decisions when issuing the impugned orders. To ensure fairness, the Court set aside the orders and directed the proper officer to decide the refund application afresh, after considering the Gujarat High Court decision and any other decisions relied on by the petitioner. A personal hearing must be granted, and a reasoned order issued within three months of submitting an authenticated copy of the judgment. The question of the validity of Rule 90(3) was expressly kept open. The petition was disposed of without costs.
