M/S. Bhima Enterprises vs. The Commissioner

WP(MD)/27734/2023HC MadrasGSTCNR HCMD01129204202305 August 2026Bench: HONOURABLE MR JUSTICE G.R.SWAMINATHAN5 pages

AI SummaryRemanded

Facts

The petitioner, M/s. Bhima Enterprises, filed a writ petition seeking a Mandamus to direct the respondents (Central GST & Excise authorities) to refund tax and penalty amounting to Rs. 32,62,640/- collected on August 16, 2023, and August 17, 2023, respectively. The petitioner contended that this refund should be granted upon their execution of a bond and furnishing of security as prescribed under Section 67(6) of the Goods and Services Tax Act, 2017, for an equivalent amount. The respondents are the Commissioner, Joint Commissioner, Superintendent, and Inspector of Central GST & Excise, Tirunelveli Division.

Held

The Court noted that the prayer made in the present writ petition substantially overlaps with the relief sought in another writ petition, W.P.(MD)No.9040 of 2024. In view of the disposal of the said writ petition, the Court found that nothing further survives for adjudication in the current writ petition. Consequently, the writ petition was disposed of accordingly. No costs were awarded. The operative direction was to dispose of the writ petition based on the disposal of a related matter.

Key Issues

1. Whether the petitioner is entitled to a refund of Rs. 32,62,640/- collected as tax and penalty, upon furnishing a bond and security as per Section 67(6) of the GST Act, 2017? The petitioner argued that the authorities ought to have accepted the execution of the bond and furnishing of security as stipulated in Section 67(6) of the GST Act, 2017, to facilitate the refund of the collected tax and penalty. The respondents' arguments are not recorded in the judgment.

Sections Cited

Section 67(6)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

W.P(MD)No.27734 of 2023 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT Reserved on : 28.11.2025 Pronounced on : 05.08.2026 CORAM THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN W.P.(MD)No.27734 of 2023 and W.M.P.(MD)No.23842 of 2023 M/s.Bhima Enterprises, Represented by its Accountant, No.8/7, Ramapuram West, Manikattipottal, Pottal Post, Nagercoil, Kanyakumari District – 629 501. ... Petitioner Vs. 1.The Commissioner, Office of the Central GST & Excise, Tirunelveli Division, 2nd Floor, Central Revenue Building, Tractor Road, NGO “A” Colony, Tirunelveli – 627 007. 2.The Joint Commissioner, Office of the Central GST & Excise, Tirunelveli Division, 2nd Floor, Central Revenue Building, Tractor Road, NGO “A” Colony, Tirunelveli – 627 007. 3.The Superintendent, Office of the Central GST & Excise, Tirunelveli Division, 1/5 https://www.mhc.tn.gov.in/judis W.P(MD)No.27734 of 2023 2nd Floor, Central Revenue Building, Tractor Road, NGO “A” Colony, Tirunelveli – 627 007. 4.The Inspector, Office of the Central GST & Excise, Tirunelveli Division, 2nd Floor, Central Revenue Building, Tractor Road, NGO “A” Colony, Tirunelveli – 627 007. ... Respondents Prayer: Writ Petition filed under Article 226 of Constitution of India, to issue a Writ of Mandamus, directing the respondents to refund the tax and penalty collected from the petitioner to the tune of Rs.32,62,640/- on 16.08.2023 and 17.08.2023 respectively by accepting the execution of bond and furnishing of security by the petitioner as prescribed under Section 67(6) of the Goods and Services Act, 2017 for an equivalent amount. For Petitioner : Mr.R.Karthik Ranganathan For Respondents : Mr.AR.L.Sundaresan, Additional Solicitor General, Assisted by Mr.N.Dilip Kumar.

ORDER The prayer made in this writ petition substantially overlaps with the relief sought for in W.P.(MD)No.9040 of 2024. In view of the disposal of the said writ petition, nothing survives for further 2/5 https://www.mhc.tn.gov.in/judis adjudication in this writ petition. It stands disposed of accordingly. No costs. Consequently, connected miscellaneous petition is closed.

05.08.

2026

NCC : Yes / No Index : Yes / No Internet : Yes/ No ias To 1.The Commissioner, Office of the Central GST & Excise, Tirunelveli Division, 2nd Floor, Central Revenue Building, Tractor Road, NGO “A” Colony, Tirunelveli – 627 007. 2.The Joint Commissioner, Office of the Central GST & Excise, Tirunelveli Division, 2nd Floor, Central Revenue Building, Tractor Road, NGO “A” Colony, Tirunelveli – 627 007. 3.The Superintendent, Office of the Central GST & Excise, Tirunelveli Division, 2nd Floor, Central Revenue Building, Tractor Road, NGO “A” Colony, Tirunelveli – 627 007. 3/5 https://www.mhc.tn.gov.in/judis

The Inspector, Office of the Central GST & Excise, Tirunelveli Division, 2nd Floor, Central Revenue Building, Tractor Road, NGO “A” Colony, Tirunelveli – 627 007. 4/5 https://www.mhc.tn.gov.in/judis G.R.SWAMINATHAN, J. ias W.P.(MD)No.27734 of 2023 05.08.2026

5/5 https://www.mhc.tn.gov.in/judis

Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.