Case Law Details
Savista Global Solutions Private Limited Vs Union of India And 5 Others (Allahabad High Court)
Introduction: The Allahabad High Court, in the case of Savista Global Solutions Private Limited vs. Union of India and Others, delivered a significant judgment regarding the refund claim of Rs.1,28,50,535/- under CGST Rule 97A. This article explores the key arguments, court proceedings, and the implications of the judgment.
Detailed Analysis: The petitioner sought a mandamus for the refund of Rs.1,28,50,535/-, which became due under the order dated 06.01.2020, related to July 2019. The application for refund, filed manually on 27.09.2019, was processed beyond the stipulated 60 days, leading to interest liability under Section 56 of the CGST Act, 2017.
The respondents, while claiming approval of the refund on 06.01.2020, presented a defense stating that the application and forwarding letter were physical, not suitable for online processing. The court rejected this argument, citing Rule 97A, allowing manual filing despite subsequent circulars emphasizing online processing.
The judgment emphasized that the Circular No.125/44/2019-GST, issued on 18.11.2019, couldn’t override Rule 97A. The court affirmed that once an application is processed and an order passed, respondents can’t escape liability or interest.
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