Newsletter – Vol. 2, Issue 5 – 30.01.2022

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Recording reason in the order is mandatory while rejecting the refund application: Hon’ble Bombay High Court
In M/s Colgate Global Business Services Pvt. Ltd. v. UOI and Ors., Writ Petition No. 802 of 2021, Hon’ble HC held that a perusal of the impugned Order indicates that the Respondent No. 3 has rejected the application for refund without recording any reasons, though the same is mandatory under Rule 92(3) of the CGST Rules, 2017. In our view, the Order passed by the Respondent No. 3 is in breach of the said provisions and deserves to be granted and set aside.

On expiry of a period of one year, Electronic Credit Ledger would automatically get unblocked: Hon’ble Gujarat High Court
In M/s Barmecha Texfab Pvt. Ltd. v. Commissioner, Government of Gujarat, R/SCA No. 17567 of 2021, Hon’ble HC held that the rule itself has provided that the Electronic Credit Ledger can be blocked for a period of one year. On expiry of a period of one year, it would automatically get unblocked. In fact, it was the duty of the authority concerned to permit the assessee, i.e. the writ-applicant, to avail the input credit available in his ledger. Once the statutory period comes to an end, the authority has no further discretion in the matter, unless a fresh order is passed. In the case on hand, it is very unfortunate to note that despite the fact that the period of one year elapsed, the authority did not permit the writ-applicant to avail the credit available in his ledger.

The limitation for April – August 2019 refund claim is covered by the order of the Hon’ble Supreme Court extending the period of limitation due to the outbreak of COVID-19 pandemic: Hon’ble Madras High Court
In M/s Logicvalley Technologies Pvt. Ltd. v. The Assistant Commissioner, Coimbatore, W.P. No. 28411 of 2021 And W.M.P. Nos. 30008 & 30010 of 2021, Hon’ble HC held that since the issue covered by the order of this Court (M/s GNC Infra LLP v. Assistant Commissioner (Circle) 2021, W.P. Nos. 18165 & 18168 of 2021) and the decision of the Hon’ble Supreme Court, I am inclined to allow this writ petition by directing the respondent to pass appropriate orders on the refund claim made by the petitioner for the period between August 2019 i.e., on 20.09.2021 and dispose of the same in accordance with law and on merits within a period of six weeks from the date of receipt of a copy of this order.

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