Laxmi Organic Industries LTD. vs. Union Of INDIA And Ors
Held
The Court held that while the Superintendent was bound by the impugned circular issued under Section 168 of the CGST Act, they were equally bound by the CGST Act and Rules, including Rule 97A. Rule 97A, with its non-obstante clause, overrides other rules in Chapter X and permits manual filing of applications despite the general provision for electronic filing in Rule 89. The Court reasoned that interpreting Rule 97A to exclude manual filing would render it redundant. Therefore, the impugned circular applies only to electronically filed applications and cannot override the statutory Rule 97A. The Gujarat High Court's decision in F. S. Enterprise was distinguished as it did not address a situation where a statutory rule permitted manual filing. The Court clarified that the impugned circular applies only to applications filed electronically and not to manual applications. The letter dated July 27, 2021, from the Superintendent was set aside. The petitioner was permitted to file a fresh manual refund application within a fortnight, which the Superintendent was directed to process and conclude within two months, ensuring reasons for rejection or prompt refund if successful.
Facts
The petitioner, Laxmi Organic Industries Ltd., filed manual refund applications for Financial Years 2018-19 and 2019-20 on June 10, 2021, and June 22, 2021, after failing to upload "Statement 5B" online. These applications were returned by the Superintendent, Tech Division-II, CGST & C. Ex., Raigad, via a letter dated July 27, 2021. The reason for return was that refund applications must be filed online in FORM GST RFD 01 on the common portal, as per Circular No. 125/44/2019-GST dated November 18, 2019, effective from September 26, 2019. The petitioner challenged this action and the impugned circular through a writ petition, seeking to declare the circular ultra vires and to allow manual filing of refund applications.
Key Issues
1. Whether Circular No. 125/44/2019-GST dated November 18, 2019, which mandates online filing of refund applications, is ultra vires Section 54, Section 16, and Section 168(1) of the CGST Act, 2017, and Rule 89 of the CGST Rules, 2017, by creating a condition for online filing only? (Question of law) 2. Whether the petitioner is entitled to file a refund application manually if they are unable to file it online? (Question of mixed law and fact) Petitioner's contentions: Rule 97A of the CGST Rules, 2017, permits manual filing and processing of refund applications, overriding the requirement for online filing stipulated in the impugned circular. The Superintendent acted illegally by not accepting and processing the manual application. The impugned circular is beyond the parent provisions of the Act and Rules. Respondents' contentions: The Superintendent was bound by the impugned circular and could not accept manual applications. They relied on the Gujarat High Court decision in F. S. Enterprise vs. State of Gujarat (2020 (32) G.S.T.L. 321 (Guj.)). They also argued that any provisions applicable for electronic filing under Chapter X of the CGST Rules, 2017, shall also apply to manual filing, as per paragraph 6.1 of their reply affidavit.
Sections Cited
Section 54, Section 16, Section 168(1), Rule 89, Rule 97A, Section 164
AI-generated summary — verify with the full judgment below
2-WP.7861.2021 J.V.Salunke,PS IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 7861 OF 2021
Laxmi Organic Industries Ltd. } Petitioner
versus Union of India and Ors.
} Respondents
Mr. Bharat Raichandani with Mr. Mahesh Raichandani and Ms. Ankita Vashistha i/b. UBR Legal Advocates for the petitioner.
Mr. J. B. Mishra with Ms. Sangeeta Yadav and Mr. Ashutosh Mishra for the respondents.
CORAM :- DIPANKAR DATTA, CJ &
M. S. KARNIK, J.
DATE :- NOVEMBER 30, 2021
PC :-
Having failed to upload “Statement 5B” along with refund applications which were filed online, the petitioner applied manually on 10th June, 2021 and 22nd June, 2021 for F.Y.s 2018-19 and 2019-2020. Such applications were returned without being processed with an instruction that in terms of Circular No. 125/44/2019-GST dated 18th November 2019 (hereafter “the impugned circular”, for short), a refund application has to be filed in FORM GST RFD 01 on the common portal and the same has to be processed electronically, with effect from 26th September 2019. Such an instructi
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