Ramal Industries PVT LTD vs. State Of Punjab And Another
Facts
The petitioner, Ramal Industries Private Limited, sought a refund of GST on the basis of an inverted duty structure for the period April 2019 to August 2019. The petitioner purchased inputs on payment of GST at 18% and supplied goods after processing at 5% GST. The competent authority sanctioned a total refund of Rs. 34,66,268/- on November 19, 2019. However, only 50% of this amount, Rs. 17,33,134/-, was released. The petitioner filed a writ petition seeking a mandamus to direct the Assistant Commissioner of State Tax, Ludhiana-1, Punjab, to release the remaining sanctioned refund amount.
Held
The Court accepted the statement made by the learned State counsel that the balance refund amount of Rs. 17,33,134/- would be released to the petitioner-company within one month from the date of the order. Consequently, the writ petition was disposed of based on this assurance. The Court further observed that regarding the grant of interest on the delayed release of the refund, the competent authority would need to take a decision. This decision would either involve accepting the petitioner's claim for interest or, if denied, passing a reasoned speaking order that would be communicated to the petitioner. The Court did not explicitly decide on the entitlement to interest but directed a future decision on this aspect.
Key Issues
1. Whether the petitioner is entitled to the release of the remaining sanctioned refund amount of Rs. 17,33,134/-? Petitioner's contention: The petitioner asserted that the competent authority had sanctioned the refund, and the precise grievance was the non-release of the balance amount. They sought a direction for the release of the remaining sum. Revenue's contention: The learned State counsel, upon instructions, made a statement that the balance refund amount would be released within one month from the date of the order. The judgment does not record any specific argument from the revenue regarding the entitlement to the refund itself, but rather addresses the procedural aspect of its release.
AI-generated summary — verify with the full judgment below
111 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-6982-2022 (O&M)
Date of Decision:04.04.2022 Ramal Industries Private Limited ....... Petitioner
versus State of Punjab and another ...... Respondents CORAM : HON'BLE MR. JUSTICE TEJINDER SINGH DHINDSA HON'BLE MR. JUSTICE PANKAJ JAIN *** Present: Mr. Deepak Gupta, Advocate for the petitioner. *** TEJINDER SINGH DHINDSA,
J. (ORAL)
As per averments made in the petition, the petitioner purchased inputs on payment of GST @ 18% and supplied the goods after completing process of dyeing on collection of GST @ 5%. Petitioner claimed refund of tax on the basis of inverted duty structure for the period April, 2019 to August, 2019. Categoric assertion made in the petition is that on 19.11.2019 the competent authority sanctioned refund of tax. The precise grievance that has led to the filing of the instant petition is that out of the sanctioned refund of the tax of Rs. 34,66,268/-, 50% of the amount i.e. Rs.17, 33,134/-, has been released. Instant petition has been filed seeking a mandamus for directing the 2nd respondent i.e. Assistant Commissioner of State Tax, Ludhiana-1, Punjab to release the rem
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