Hirenkumar Valjibhai Sankhalava Vs Deputy Commissioner of State Tax (Gujarat High Court)
The Gujarat High Court considered a writ petition challenging the rejection of a refund application under Section 54 of the Gujarat Goods and Services Tax Act, 2017. At the outset, the Court indicated that it was not inclined to entertain the petition in view of the alternative statutory remedy of appeal under Section 107. However, on instructions, the petitioner requested a decision on merits instead of pursuing the appellate remedy.
The petitioner, along with others, managed a coaching institute known as “Alpha-1 Tuition Classes and Hostel.” A search was conducted by GST authorities under Section 67(2) from 06.10.2023 to 10.10.2023. During the search, documents were seized, statements were recorded and panchnamas were prepared. The petitioner paid a total amount of Rs.1,96,25,330/- towards tax, interest and penalty. Nearly two years later, on 28.08.2025, the petitioner filed an application in Form GST RFD-01 under Section 54(1), claiming that the payment had been made under protest and seeking refund. Form GST DRC-04 acknowledging voluntary payment was issued on 19.11.2025, and after issuance of a show cause notice, consideration of the reply and personal hearing, the refund claim was rejected by order dated 03.02.2026 in Form GST RFD-06.
