HC directed GST Authority to decide Refund Application of Medical Bureau within six weeks

Last updated: 10 August 2021

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Quick Summary

The Delhi High Court has directed the Commissioner of GST to decide on the Medical Bureau's refund application within six weeks. The Bureau sought a refund of over £1.35 million in unutilised input tax credit from October 2017 to July 2018, arising from zero-rated export supplies. The court intervened as the refund applications had not been processed.

Court :
Delhi High Court

Brief :
The Hon'ble High Court of Delhi on finding that the relevant refund applications had not yet been disposed of, directed the original Adjudicating Authority to decide the above matter within a period of six weeks in accordance with the law.

Citation :
W.P.(C) 7475/2021 & CM APPL. 23486/2021 decided on August 2, 2021

In Medical Bureau v. Commissioner of Central Goods and Services Tax, Delhi North and Anr [W.P.(C) 7475/2021 & CM APPL. 23486/2021 decided on August 2, 2021], Medical Bureau ('the Petitioner') filed a writ petition seeking directions to the Commissioner of Goods and Services Tax ('the Respondent') to refund to the former, an amount of Rs. 1,35,30,255/- lying as unutilized input tax credit during the period spanning October 2017 to July 2018, along with interest.

The Petitioner contended that the present claims arose out of the failure of the Respondent to issue refund due to the Petitioner, owing to the exports made by the Petitioner, which qualified as ‘Zero-rated supplies', the refund of which was covered under Section 16 (3) of the Integrated Goods and Services Tax Act, 2017 ('IGST Act') read with Section 54 of the Central Goods and Services Tax Act, 2017 ('CGST Act').

The Hon'ble High Court of Delhi on finding that the relevant refund applications had not yet been disposed of, directed the original Adjudicating Authority to decide the above matter within a period of six weeks in accordance with the law.

FAQ :

The Medical Bureau filed a petition because the GST Authority had not yet decided on their application for a refund of unutilised input tax credit.

The Medical Bureau was seeking a refund of Rs. 1,35,30,255/- (approximately £1.35 million) in unutilised input tax credit.

The refund application covered the period from October 2017 to July 2018.

The Bureau contended that the refund was due because of exports made, which qualified as 'Zero-rated supplies' under the IGST Act and CGST Act.

The High Court directed the GST Adjudicating Authority to decide the refund matter within six weeks from the date of the order.

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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