2018(05)LCX0035

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

HONOURABLE MR.JUSTICE AKIL KURESHI and HONOURABLE MR. JUSTICE B.N. KARIA

M/S GARDEN SILK MILLS LTD

Versus

Union of India

R/SPECIAL CIVIL APPLICATION NO. 7397 of 2018 decided on 10/05/2018

Advocated By -

MR ANAND NAINAWATI

1. Petitioner has   challenged an order / communication dated 07.03.201 passed  by   the respondents   rejecting   petitioner's   refund   claim on the ground that the petitioner had failed to submit   fresh   application   within   prescribed   time of   30   days   in   response   to   the   deficiency   memo issued on 16.01.2018.

2. Counsel for the petitioner submitted that the petitioner   had   filed   the   refund   claims   in response   to   which   under   communication   dated 16.01.2018,   the   respondent   raised   following deficiencies:

SR. NO. DESCRIPTION
1 You have not submitted the details as per statement 3 or 5 of Annexure to FORM GST RFD­01.
2 You have not submitted the undertaking for returning the refund amount to government with interest if the requirements of clause (c) of sub­section (2) of section 16 read with sub­section 42 of CGST Act have not been complied with.
3 You have not submitted declaration regarding non­prosecution for last five years under Rule 91 of CGST Rules, 2017.
4 You  have   not  submitted  the  declarations as per FORM GST RFD­01.

You are advised to file a fresh refund  application  after  rectification  of  above  deficiencies.

3. Within two days of receipt of such communication, the petitioner removed all deficiencies by supplying necessary documents and declarations. Filing of fresh refund application was not necessary. The petitioner therefore did not file any such fresh application. The respondents have rejected the refund claims only on the ground that the fresh application was not filed. Counsel submitted that petitioner having removed all defects, it was not open for the respondents to reject the refund claims relying on a superfluous condition imposed in the said communication dated 16.01.2018. The respondents have committed serious error in rejecting the petitioner's refund claims for sum in excess of Rs.17 crores on such unsustainable ground.

4. Notice, returnable on 05.07.2018. 

(AKIL KURESHI, J) 

 (B.N. KARIA, J)