Section 54 GST Refund Time Limit Mandatory; HC Can Condone Delay in Genuine Cases

Assistant Commissioner of Central Taxes Vs Merck Life Science Private Limited (Karnataka High Court) The Hon’ble Karnataka High Court held that: (i) time limit under section 54 is mandatory and not directory; (ii) however; the High court under Article 226 of the Constitution of India has power to condone delay; (iii) the state cannot unjustly enrich itself when tax was paid twice in terms of Article 265 of the Constitution; (v) refers to Supreme Court decision in Salonah Tea; (vi) in the facts of the present case; the delay was rightly condoned and directs the revenue to process the refund c...