Proxima Steel Forge Pvt. Ltd. Vs Union of India and others (Punjab and Haryana High Court)
Proxima Steel Forge Pvt. Ltd., based in Punjab, is embroiled in a legal dispute with the tax authorities over a refund claim totaling Rs. 2,02,09,111. The case, now before the Punjab and Haryana High Court, raises significant questions about procedural adherence within the Central Goods and Services Tax (CGST) framework.
Background of the Case
Proxima Steel initially submitted a refund application, which was denied by the Assistant Commissioner on grounds of time limitations as per a July 2021 circular. This decision prompted Proxima Steel to appeal to the Joint Commissioner, who ruled in favor of the company. In an order dated August 29, 2023, the Joint Commissioner noted that the refund claim should not have been dismissed solely on the basis of time limits. He directed the proper officer to reassess the refund claim based on its merits, emphasizing adherence to principles of natural justice.
Assistant Commissioner’s Response
Following the Joint Commissioner’s order, the Assistant Commissioner, identified as Sewa Ram, revisited the application. In December 2023, Ram corresponded with the Joint Commissioner, seeking clarification regarding the appeal order. However, on December 29, the Joint Commissioner rejected this request for clarification, deeming it outside the permissible scope of Section 161 of the CGST Act. Subsequently, on January 24, 2024, the Assistant Commissioner again dismissed Proxima Steel’s refund application, citing time-barred status as the reason.
