Case Law Details
Desai Brothers Limited Ratanpur Vs. State of U.P. and 3 Others (Allahabad High Court)
Introduction: The Allahabad High Court, in the case of Desai Brothers Limited Ratanpur vs. State of U.P., has delivered a significant judgment regarding the remittance of interest under Section 54. This article provides a detailed analysis of the case, examining the background, legal arguments, and the court’s ruling.
Detailed Analysis: The petitioner, an ex-UP dealer, faced challenges when a consignment of ‘beedi’ from West Bengal to Haryana, passing through U.P., was seized. This led to a tax and penalty demand of Rs. 47,32,040/-. The petitioner, after furnishing a bank guarantee, challenged the order, resulting in a favorable appellate decision.
Despite the order being in the petitioner’s favor, the refund remained unprocessed for over four years. The state attributed the delay to the petitioner’s failure to file an online refund application. The petitioner, however, argued that technical glitches on the GSTN portal prevented online filing and emphasized Rule 97-A, allowing physical applications.
The court, after considering the facts and relevant provisions, emphasized the finality of the appeal order and the obligation to refund the amount. Section 54 outlined the procedure, requiring an application within two years, to be dealt with in 60 days. Rule 97-A, permitting physical filing, was crucial in this context.
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