M/S Kala Construction And Another vs. State Of U.P. And 3 Others

Facts

The petitioners, M/S Kala Construction and Another, are aggrieved by the delay in processing their refund claim for excess Goods and Services Tax (GST) paid. They contend that they paid GST at 18% instead of the applicable 12%. A letter dated October 7, 2024, was sent by the Executive Officer, Nagar Panchayat Badagaon, District Jhansi, to the Principal Secretary, Urban Development Department, Government of U.P., Lucknow, seeking approval for a refund of Rs. 8,96,409/-. The petitioners allege that respondent no. 1 (Principal Secretary) has not acted on this request, leading to the present writ petition. The State respondents acknowledged that no useful purpose would be served by keeping the petition pending and suggested a direction to respondent no. 1 to consider the grievance.

Held

The Court, without delving into the merits of the case, disposed of the writ petition. It permitted the petitioners to file a fresh representation, along with a certified copy of the Court's order, detailing all their grievances before respondent no. 1 within one month. The Court directed respondent no. 1 to consider and decide this representation in accordance with the law. This decision is to be made after providing due notice and an opportunity of hearing to the petitioners. The entire process, from receiving the representation to deciding it, is to be completed within two months thereafter. The Court did not make any specific findings on the entitlement to the refund or the validity of the excess payment, as it chose to direct a fresh representation and consideration by the authority.

Key Issues

1. Whether the petitioners are entitled to a refund of excess GST paid due to payment at 18% instead of 12%? 2. Whether respondent no. 1 has unduly delayed the consideration of the refund request? Petitioner's arguments: The petitioners argued that they have paid an excess amount of GST, having been directed to pay at 12% but actually paying at 18%. They relied on the letter dated October 7, 2024, sent by the Nagar Panchayat to the Principal Secretary seeking approval for the refund of Rs. 8,96,409/-. They contended that respondent no. 1 has failed to grant the requisite approval despite this communication. Revenue's arguments: The State respondents submitted that no useful purpose would be served by keeping the writ petition pending and that an appropriate direction may be issued to respondent no. 1 to consider the petitioners' grievance.