K.L.K.A. International Rep by its Proprietor M. Mohamed Riyas Vs State Tax Officer (Madras High Court)
Madras High Court recently set aside an order dated 11.11.2024, which had rejected the petitioner’s GST refund application on the grounds of non-submission of a reply to a notice issued under Form RFD-08. The petitioner had filed a refund claim (Form RFD 01 ARN: AA330524093959N dated 22.08.2024) relating to zero-rated supplies, seeking a refund under Section 54 of the Goods and Services Tax (GST) Act and Section 16(3) of the Integrated Goods and Services Tax (IGST) Act, 2017.
The Court observed that the rejection of the refund claim solely on procedural grounds of non-response was not justified. The petitioner deserved a fair opportunity to present its case, especially since the refund claim was based on statutory provisions entitling zero-rated supply dealers to claim refunds. Accordingly, the Court quashed the impugned rejection order and remanded the matter back to the GST authorities for fresh consideration on merits.
The Court directed the petitioner to submit all necessary documents to substantiate the entitlement to refund under the relevant GST provisions. The authorities were instructed to examine the refund application afresh in accordance with the law. The judgment emphasized the need for procedural fairness and ensuring substantive justice in GST refund cases, particularly involving zero-rated supplies.
This decision reinforces the principle that GST authorities must afford taxpayers a reasonable opportunity to present their claims before rejecting refund applications, thus safeguarding taxpayer rights under the GST framework.
The writ petition was disposed of with no order as to costs, and connected miscellaneous petitions were closed.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
