Triveni Electrodes Vs Union of India (Rajasthan High Court at Jaipur)
Rajasthan HC directs GST Authorities to decide on petitioner’s time barred GST refund claim
The Hon’ble Rajasthan High Court in M/S Triveny Electrodes & ors. v. Union of India, Through Secretary, Finance Department, Government of India, New Delhi & ors. [D.B. Civil Writ Petition No. 2137/2022 dated January 20, 2022] upheld the provisions w.r.t claiming of refund of unutilized Input Tax Credit (ITC) and asked the department to pass final order after taking into account the reply of the assessee.
Facts:
M/S Triveny Electrodes & ors. (“the Petitioner”) had challenged the vires of Section 54 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) as ultra vires to the constitution. The petitioner had claimed refund of the accumulated credit in the ledger account. The Union of India, Through Secretary, Finance Department, Government of India, New Delhi & ors. (“the Assessing Officer” or “Competent Authority”) communicated the Petitioner and rejected the claim stating that it is time barred.
The competent authority however before passing such order issued a show cause notice to the Petitioner which was to be replied within 15 days. Following which the Petitioner also filed a reply raising concern that refund was not claimed after the expiry of the limitation period and the final order is pending.
Subsequently, the Petitioner also filed the present writ and contended that the relaxations related to COVID would apply to the provisions related to time limit contained in the statutes for refund.
Issue:
Whether Section 54 of the CGST Act is ultra vires the Constitution of India?
Held:
The Hon’ble Rajasthan High Court in D.B. Civil Writ Petition No. 2137/2022 dated January 20, 2022] held as under:
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