M/S. Super Wave Technology Private Limited vs. The Assistant Commissioner Of Central Tax

Held

The High Court held that the Central Authorities had not decided the petitioner's refund claim on merits, and the communication issued was not an appealable decision. It directed the Central Authorities to examine the refund claim for transitional credit. Consequently, the Court quashed the State Authorities' orders demanding interest, allowing them to recommence proceedings only after the Central Authorities render a decision on the refund.

Facts

The petitioner imported goods in June 2017 but could only clear customs after the GST regime commenced in July 2017, due to a delay in obtaining a No-Objection Certificate. Advised by Central GST Authorities to file GSTR-3B for transitional credit, the petitioner availed ITC, which was later denied in 2023. This led to a refund claim with Central Authorities, which was not decided on merits, and a demand for interest from State Authorities under Section 50(1) for the availed ITC.

Key Issues

Whether the petitioner was entitled to a refund based on transitional credit for imported goods, and whether the demand for interest by State Authorities was premature given the pending decision on the refund claim by Central Authorities.