Smartadmedia Through Its Sole Proprietore Navdeep Singh Sahni Vs Commissioner of Delhi Goods And Service Tax (Delhi High Court)
In a recent landmark judgment, the Delhi High Court has directed the Commissioner of Delhi Goods and Service Tax to expedite the processing of GST refunds. This directive came as a response to a petition filed by Smartadmedia, through its sole proprietor Navdeep Singh Sahni, seeking the issuance of a pending GST refund amounting to Rs. 9,69,017/-. The court’s decision underscores the importance of adhering to statutory timelines stipulated under Section 54 of the Central Goods and Services Tax Act, 2017.
Background of the Case
The petitioner, Smartadmedia, had filed for a GST refund on January 22, 2024. Despite the passage of the statutory period of 60 days, the refund had not been issued, nor had any deficiency memo been provided. This delay prompted the petitioner to seek judicial intervention for the issuance of the refund along with the applicable interest as per the provisions of the CGST Act, 2017.
Statutory Provisions and Guidelines
Section 54(7) of the CGST Act mandates that the proper officer must pass an order for the refund within 60 days from the date of receipt of a complete application. Additionally, the Central Board of Indirect Taxes and Customs (CBIC) had issued Circular No. 125/44/2019-GST, which provides detailed guidelines on the processing of refund applications. According to this circular:
- Refund applications must be submitted in FORM GST RFD-01 through the common portal.
- The Application Reference Number (ARN) is generated once the application and all supporting documents are uploaded.
- The proper officer should process the application and issue an acknowledgment or deficiency memo within 15 days from the generation of the ARN.
- In cases where the refund is not processed within 60 days, interest at the rate of 6% per annum is payable from the date of expiry of the 60-day period until the refund is credited to the applicant’s bank account.
Court’s Directive
