KPIL-JWIL Joint Venture Vs State of Bihar (Patna High Court)
Summary: The Patna High Court considered a writ application filed by KPIL-JWIL Joint Venture challenging a Deficiency Memo/Show Cause Notice in Form GST RFD-03 dated 01.03.2025 issued by the Joint Commissioner of State Tax, Munger Circle. The notice proposed rejection of a refund of Rs. 1,75,00,000/- accumulated in the petitioner’s Electronic Cash Ledger. The petitioner also sought a direction for refund of the said amount.
The petitioner was a works contractor registered with the Munger Circle of the Commercial Tax Department. It had applied on 15.12.2023 for refund of excess balance in its Electronic Cash Ledger amounting to Rs. 1,75,00,000/-. That refund application was rejected on 31.05.2024 on the ground that the petitioner had availed ineligible input tax credit of Rs. 24,13,37,314.00 for 2022-23, based on analysis of inward e-way bills generated by suppliers, GSTR-3B and GSTR-2A. The petitioner appealed, and the Appellate Authority set aside the refund-rejection order on 31.12.2024. Revenue thereafter filed a revision application on 28.01.2025 before the Commissioner of State Taxes under Section 108 of the CGST/BGST Act, 2017.
The petitioner filed a fresh refund application on 05.02.2025. The adjudicating authority issued the deficiency memo on 01.03.2025, stating that, according to data available on GSTBO, refund was not admissible under Section 54 of the CGST/BGST Act, 2017 read with Rule 90 of the CGST/BGST Rules, 2017 because of undischarged assessed tax liability for previous years. During pendency of the writ application, the respondents filed an appeal on 30.06.2026 under Section 112 before the GST Appellate Tribunal, Patna.
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