GST:
HC set aside refund rejection order as proper reasons were not assigned for conclusion that there was no excess payment:
- An assessee was found to have incorrectly claimed Input Tax Credit (ITC) on CGST and SGST instead of IGST, which was discovered during an audit.
- The assessee, upon realization, paid the incorrectly claimed amounts of Rs.4,91,390/- and Rs.4,59,000/- using Form GST DRC 03.
- The assessee then filed a refund claim for the payments made, which also included a double payment for July 2020 due to a discrepancy between GSTR 1 and GSTR 3B returns.
- The revenue department rejected the refund claim without providing any reasons, even though they acknowledged the incorrect ITC claim.
- The court ruled that the order rejecting the refund claim was to be set aside and the matter was to be reconsidered, as the revenue department did not provide proper reasons for their conclusion.
Madras HC – Manohar v. Assistant Commissioner of GST & Central Excise [W.P. NO. 13518 OF 2024]
