GST UPDATE

???? Desk of CA. Praveen Sharma Series-558 ????

ALLAHABAD HIGH COURT IN THE CASE OF Bushrah Export House Section 54 of the CGST Act, 2017

?The petitioner, a manufacturer and exporter of garments, sought a refund of ?90,97,998 as Input Tax Credit (ITC) for the period from February 2020 to March 2020. However, a show cause notice was issued on 14.03.2024, almost four years later, which the petitioner claims violates the 60-day period prescribed under Section 54(7) of the Central GST Act, 2017.

?The respondents argued that the petition is not maintainable as an appeal under Section 107 is available. The petitioner countered by referring to a related case where a refund was previously allowed by an appellate authority, and a special appeal is currently pending in a different case.

?The court concluded that the cause of action in the pending special appeal is different from the current case. The petition was disposed of with a direction for the petitioner to approach the appellate authority to address the impugned orders. The court directed the appellate authority to consider the appeal on its merits, acknowledging that the petitioner had mistakenly pursued a writ petition.

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CA. Praveen Sharma

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