Order: 20 Aug 2025 
Parties: M/s GTL Infrastructure Limited v. State of Jharkhand & Ors.

Facts -

• The petitioner deposited statutory pre-deposit under Section 107 CGST/JGST Act while filing an appeal. Upon succeeding in appeal, refund was sought. Authorities rejected it as time-barred under Section 54 (two-year limitation).

Issue -

• Whether refund of statutory pre-deposit is subject to Section 54 limitation.

Order -

• The division bench of the Hon'ble High court held that Refund of pre-deposit is a statutory right upon success in appeal; limitation under Section 54 does not apply.
• The word “may” in Section 54 is directory, not mandatory. Retaining such money amounts to unjust enrichment by the State, contrary to Article 265.
• Therefore, the Writ is allowed; refund directed within four weeks, else 6% interest payable.