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September 2023

Goods And Services Tax

By Puloma Dalal | Jayesh Gogri | Mandar Telang
Chartered Accountants
Reading Time 13 mins
I. HIGH COURT

41. Shree Renuka Sugars Ltd vs. State of Gujarat
2023 (8) Centax 235 (Guj.)
Date of order: 13th July, 2023

Refund application filed manually cannot be denied due to lacunae in the electronic system.

FACTS
Petitioner exports refined sugar under bond without payment of tax. Since the exports are zero-rated supply, ITC of input supply remains unutilised. Petitioner filed the refund application for such unutilized ITC under the category of “Refund of Unutilized ITC” on the portal. However, petitioner erroneously claimed for the lower amount. Respondent sanctioned and paid the lower amount claimed. As the portal and circular dated 3rd October, 2019 does not allow filing of second application for the same period under the same category, petitioner filed supplementary refund application for the remaining amount under the category “any other”, which was rejected on ground that it was not under a valid category. Hence, the petition.

HELD
The High Court held that when substantive conditions for claiming the benefit are fulfilled, the benefits cannot be denied on the sole ground of lacunae in the electronic system by relying upon the decision of Gujarat High Court in Bombardier Transportation India Pvt. Ltd. vs. DGFT2021 (377) ELT 489- Guj and various other judgments. Refund order passed for rejecting the refund application merely on technical ground without sc
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