Refund of GST Pre-Deposit Cannot Be Denied on Limitation Grounds: Jharkhand HC

By Jyoti Baluni Goods and Services Tax Judiciary August 30, 2025

TaxGuru Citation: 2025 taxguru.in 7429
Case Name: GTL Infrastructure Limited Vs State of Jharkhand (Jharkhand High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Jharkhand High Court

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GTL Infrastructure Limited Vs State of Jharkhand (Jharkhand High Court)

Based on the Jharkhand High Court’s judgment in the case of M/s. GTL Infrastructure Limited Versus The State of Jharkhand, the refund of a statutory pre-deposit is a vested right of the assessee and cannot be denied by invoking the limitation period under Section 54 of the CGST/JGST Act, 2017.

Facts of the Case

M/s. GTL Infrastructure Limited, the petitioner, filed an appeal and made a statutory pre-deposit under Section 107 of the CGST/JGST Act. The appeal was decided in favor of the assessee, and they subsequently filed an application for the refund of the pre-deposit. The refund application was rejected through an automated order, which cited the two-year limitation period prescribed under Section 54 of the Act.

Issues Raised

The primary issue before the court was whether the limitation period of two years under Section 54 of the CGST/JGST Act applies to the refund of a statutory pre-deposit. The petitioner argued that the pre-deposit is not a tax but a statutory deposit, and its refund is a vested right once the appeal is decided in their favor. The petitioner also contended that the retention of the amount by the State violates Article 265 of the Constitution. The State, on the other hand, argued that the time limitation under Section 54 was applicable