GST refund on Inter-State supply subsequently held as intra-State supply- HC refers matter back to Appellate Authority

Radhemani and Sons Vs Additional Commissioner (Appeals) Cgst And Central Excise (Chhattisgarh High Court)

Remanded GST refund matter where supply made as inter-State was subsequently held as intra-State to decide in light of Circular No. 162/18/2021-GST

Chhattisgarh High Court set aside the order rejecting the refund claim of the assessee amounting to INR 12,69,255/- passed by the Appellate Authority and remanded back the matter to decide the same afresh in accordance with law and in light of the Circular No. 162/18/2021-GST dated September 25, 2021 (Circular) interpreting the phrase “subsequently held” in the provisions of Section 77 of Central Goods and Services Tax Act, 2017 (CGST Act) and Section 19 of the Integrated Goods and Services Tax Act, 2017 (IGST Act).

Facts:

M/s Radhemani And Sons (“the Petitioner”) a proprietorship firm had filed an application for refund claim of INR 12,69,255/- on March 18, 2020 under Rule 89 (1) of Central Goods and Services Tax Rules, 2017 (“CGST Rules”) on account of “Excess payment of IGST in February, 2018 in GSTR 3B Return” for the tax period February, 2018 in RFD-01. After considering the said application, a Show Cause Notice dated March 31, 2020 (“the SCN”) was issued by the Deputy Commissioner (“the Respondent No. 2”) in Form GST-RFD-08 and the Petitioner failed to submit any reply w.r.t. the SCN, therefore, the Respondent No. 2, vide order dated April 23, 2020 rejected the refund application of the Petitioner.

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