In a recent decision by the Calcutta High Court, a significant ruling was made regarding the refund denial and recovery proceedings under GST laws. The case involved Sunil Kumar Podder, who initially had his refund application approved. However, upon appeal by the department, the refund was reduced due to a lack of supporting export documentation, specifically Customs-certified shipping bills, leading to a demand for recovery of the excess amount.
The petitioner later obtained the necessary certified shipping bills, which confirmed the exports, and sought a reassessment of the refund entitlement. The High Court recognized the potential impact of these new documents on the earlier decision and remanded the case back to the appellate authority. The court instructed the authority to reconsider the refund based on the newly provided certified documents.
As a result, the court set aside the previous appellate order from February 2023 and the subsequent recovery proceedings initiated under Section 73. The demand notice and bank attachment were stayed pending the outcome of the fresh appellate proceedings. Meanwhile, a fixed deposit with Punjab National Bank remains as security until a new decision is made. This ruling underscores the importance of proper documentation in GST refund claims and the willingness of the judiciary to reassess cases when new evidence is presented.
Date of Order: 20 August 2025
Parties: Sunil Kumar Podder v. Union of Ind
Facts –
- Petitioner's application for refund in Form RFD 01 was initially allowed by refund sanction order in Form RFD 06 dated 11th March, 2021. On an appeal filed by the department, the appellate authority found that the petitioner had failed to substantiate the zero rated supplies inasmuch as the petitioner could not demonstrate/prove the export by supporting documents and accordingly became ineligible to be entitled to zero rated supply pertaining to export consignment for a sum of Rs.89,84,400/-.
- In departmental appeal, refund was reduced as petitioner failed to furnish Customs-certified shipping bills. Appellate order dated 23.02.2023 recomputed refund; excess treated as recoverable.
- Based on this, Section 73 proceedings were initiated; order dated 09.03.2024 passed with demand DRC-07 (11.03.2024) and bank attachment (17.06.2025).
- Petitioner later obtained certified shipping bills confirming exports and sought reconsideration.
Issue –
- Whether refund entitlement can be reassessed when new Customs-certified documents are subsequently furnished.
Order –
- The Court noted that the petitioner later obtained proper certification of shipping/export bills from the Customs Superintendent, which could alter the basis of the earlier appellate order that had denied refund eligibility.
- The matter was remanded to the appellate authority to reconsider the refund afresh on merits, taking into account the newly produced certified export documents.
- The appellate authority’s earlier order (23rd February, 2023) was set aside, and the subsequent Section 73 order (9th March, 2024) and demand in Form DRC-07 were stayed until the fresh appellate decision.
- The fixed deposit already under lien with Punjab National Bank will continue as security and shall abide by the outcome of the appellate proceedings.
