Soorajmull Bajinath Private Limited Vs Union of India & Ors. (Bombay High Court)
We share the recent order passed by the Hon’ble Bombay High Court. The petitioner is a registered assessee, inter alia, engaged in trading of iron and steel meant for construction. It applied for refund. The refund was sanctioned but it was appropriated against demand of interest under section 50 of the CGST Act for alleged delayed payment of tax. It was contended that no output tax was payable in cash but only through input tax credit. Hence, as such, no interest was payable. However, appeal also came to be rejected. Hence, petition came to be filed.
The Hon’ble Bombay High Court allowed the writ petition and directed refund within 4 weeks.
It held: (i) the petition would be maintainable, in case of refund, as GST Appellate Tribunal has not been constituted;
(ii) refers to affidavit in reply filed by the commissioner wherein the department accepts that the petitioner is entitled to refund;
(iii) relies on retrospective amendment to section 50 of the act, where there was sufficient credit balance through out the period; no interest would be payable on such reversals of ITC.
The matter was argued by Ld. Counsel Bharat Raichandani
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