IBM India Pvt Ltd Vs Union of India (Bombay High Court)
Summary: The Bombay High Court allowed IBM India Pvt. Ltd.’s writ petition challenging the rejection of its refund application for the statutory pre-deposit attributable to the portion of GST demand dropped in appeal.
The petitioner had been assessed to tax of Rs.48,96,54,949/- by the Adjudicating Authority under an Order dated 21st February, 2024. The petitioner challenged the order before the First Appellate Authority under Section 112 of the Maharashtra Goods and Services Tax Act, 2017. By Order in Appeal dated 17th March, 2025, the appeal was partly allowed and 64% of the adjudicated demand was dropped. The demand finally confirmed in the appellate order was Rs.17,50,70,729/-, while the demand dropped was Rs.31,45,84,219/-.
IBM India thereafter filed Form GST RFD-01 on 9th July, 2025 seeking refund of Rs.3,14,58,422/-, representing 10% of the demand of Rs.31,45,84,219/- that had been dropped. The refund application was filed in respect of the pre-deposit made when the first appeal was filed under Section 107 of the MGST Act.
A show cause notice dated 22nd July, 2025 proposed rejection of the refund on the ground that the appellate proceedings had not attained finality because IBM India had expressed an intention to challenge the portion of the appellate order adverse to it before the GST Appellate Tribunal under Section 112 of the MGST Act.
