Kanwaljit Singh Mujral (Legal Heir Of Late Smt. Malvinder Kaur Mujral) vs. Union Of INDIA And Ors.

Facts

The petitioner, Kanwaljit Singh Mujral, as the legal heir of the deceased taxpayer, Late Smt. Malvinder Kaur Mujral, filed two writ petitions seeking directions for the refund of GST amounts totaling Rs. 29,76,531/- and Rs. 91,653/-. The core issue was that the original taxpayer had expired, necessitating a process for refunding the amount to her legal heir. The respondent authorities suggested that the petitioner, as the husband of the deceased, could file a fresh refund application. Following discussions, the parties presented a joint note to the Court suggesting a procedural path for the refund.

Held

The Court acknowledged that there was no dispute regarding the taxpayer's entitlement to the refund amounts. The primary challenge was the procedural aspect arising from the taxpayer's death. The Court accepted the joint proposal submitted by the parties. Accordingly, the Court directed the petitioner to file fresh refund applications, signing as the authorized signatory and husband of the deceased taxpayer, Late Smt. Malvinder Kaur Mujral, associated with GSTN 07ADJPM9513E1Z1. The respondents were directed to process these fresh applications and issue the refund into the bank account linked to the said GSTN, which was confirmed to be operational. The Court did not delve into the specific provisions of the GST Act or Rules governing refunds in case of death of a taxpayer, relying instead on the agreed-upon procedure.

Key Issues

1. Whether the refund of GST amounts due to a deceased taxpayer can be processed in favour of their legal heir, and if so, what is the prescribed procedure under the GST law? Petitioner's contention: The petitioner, as the legal heir, is entitled to the refund and sought directions for its release. The petitioner relied on the understanding that the refund should be processed to the bank account linked to the deceased's GSTN, which is indicated to be operational. Revenue's contention: The respondent authorities acknowledged the entitlement to the refund but highlighted the procedural impediment due to the taxpayer's demise. They proposed that the petitioner file a fresh refund application as the authorized signatory and husband of the deceased taxpayer, and indicated that such an application would be considered appropriately. No specific legal provisions or precedents were cited by either party in the judgment.