Order Date – 07 July 2023

Parties: Advance Systems Vs The Commissioner of Central Excise and CGST

Facts – 

• The Petitioner, Advance Systems, had filed two applications pertaining to the Zero Rated Supplies under Section 54(3)(i) of the Central Goods and Services Tax Act, 2017.
• Although the petitioner filed the applications for refund (in Form GST RFD-01) on 20.04.2022; the respondent did not process the same within the stipulated period. After much delay, on 19.05.2022, the respondent issued a Show Cause Notice proposing denial of refund claimed by the petitioner on several grounds.
• The appellate authority partly sanctioned the refund claim of the petitioner. The petitioner had, once again, filed the claim for refund on the basis of the Orders-in-Appeal dated 31.01.2023. The respondent issued a deficiency memo merely stating that “supporting documents attached are incomplete”

Issue – 

• Whether the petitioner is eligible to get refund amount or not? 

Order – 

• The Divisional Bench of Hon’ble High Court observed that the petitioner was not required to make repeated applications for refund after it had prevailed in its appeals before the appellate authority. The appellate proceedings are a continuation of the petitioner’s applications for refund and, therefore, the Orders-in-Appeals were required to be implemented.
• After the petitioner had succeeded in its appellate proceedings, there is no question of the respondent now raising any deficiency or once again requiring the petitioner to furnish any undertaking or declaration which it had already done at the initial stage.
• Taxpayer is not required to make repeated applications for seeking a refund. Once a taxpayer has made a claim for refund, the same is required to be processed in accordance with law. If the refund is rejected for any reason and the said party prevails before the appellate authority,
• In view of the above, the petition is allowed. The respondent shall forthwith sanction the refund claim as preferred by the petitioner to the extent as accepted by the appellate authority along with applicable interest in accordance with the provisions of the CGST Act.

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