Refund Rejection Order Passed Merely Due to Absence of Bank Realization Certificates to Be Set Aside | HC
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Case Details: Rajiv Sharma HUF v. Union of India - [2024] 165 taxmann.com 215 (Delhi)
Judiciary and Counsel Details
- Vibhu Bakhru & Sachin Datta, JJ.
- Vineet Bhatia, Keshav Garg & Aamnaya Jagannath Mishra, Advs. for the Petitioner.
- Syed Abdul Haseeb, CGSC, Atul Tripathi, SSC, V.K. Attri, Amresh Jha & Ms Priya Kumari, Advs. for the Respondent.
Facts of the Case
The petitioner was engaged in business of trading and export of automotive spare parts, automobile components and other allied products. It filed application for refund of accumulated ITC but the same was rejected on ground of non-submission of BRCs and incomplete bank statements and ledger accounts of suppliers. It filed appeal against the rejection order but the appeal was also rejected. Therefore, it filed writ petition against the rejection of refund.
High Court Held
The Honorable High Court noted that the first reason for rejection of refund was that the petitioner had not provided Bank Realization Certificates (BRCs) for relevant period. As per Circular No. 125/44/2019-GST dated 18.11.2019, furnishing BRCs is not a necessary condition for claiming refund in case of export of goods. Therefore, the claim for refund of ITC could not be rejected by proper officer on ground of non-furnishing of BRCs.
The Court also noted that the second reason of rejection of refund was that ledger accounts provided by petitioner were incomplete and hence, payments against inward supplies could not be verified with bank statements. The Court held that this issue was required to be examined and therefore matter was remanded back to adjudicating authority for fresh decision.
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