HC directs refund of GST wrongly paid in cash inspite of ITC availability [Read Order]

The Kerala High Court in the matter of REJIMON PADICKAPPARAMBIL ALEX Vs. UNION OF INDIA has directed a refund of GST wrongly paid in cash inspite of ITC availability.

The petitioner is running a proprietorship concern with the name and style, ‘Padiken Silks’. The petitioner is a registered dealer under the provisions of the CGST Act/ SGST ACT, 2017 and the Rules thereunder. According to the petitioner, in the financial year 2017-2018, the petitioner had received various inter-state inward supply of goods, as well as from intrastate inward supply. For the inter-state supplies, the petitioner had claimed credit of ITC under IGST for an amount of Rs.26,44,557.54.

According to the petitioner, because there was no outbound supply, the whole CGST and IGST output tax liability should be written off against the ITC under IGST for Rs.26,44,557.54. The petitioner had also requested a return of the IGST that he had incorrectly paid.

These applications in Ext.P15 to Ext.P23 are currently being considered by the 5th respondent.

Given that the applications are pending before the 5th respondent for consideration, this Writ Petition is dismissed with a direction to the 5th respondent to issue appropriate orders on the petitioner’s refund applications in Ext.P15 to Ext.P23 as soon as possible in accordance with the law, preferably within two months. This writ petition is dismissed with the aforementioned directive.

For Official Judgment Download PDF Given Below: