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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D. KARIA, PRANAV TRIVEDI
S.N. Tradelink Pvt Ltd. – Appellant
Versus
State Of Gujarat – Respondent
| Table of Content |
|---|
| 1. basis for refund application under igst paid. (Para 4 , 5 , 6) |
| 2. arguments supporting the petitioner's claims. (Para 10 , 11) |
| 3. court's findings on merits of the refund claim. (Para 12 , 13) |
| 4. final decision directing the grant of refund. (Para 14) |
JUDGMENT :
BHARGAV D. KARIA, J.
1. Heard learned advocate Mr. Uchit N. Sheth for the petitioner and learned Assistant Government Pleader Ms. Shrunjal Shah for the respondents.
2. Having regard to the controversy involved in this petition, which is in a narrow compass, with the consent of the learned advocates for the respective parties, the matter is taken up for hearing.
3. Rule returnable forthwith. Learned Assistant Government Pleader Ms. Shrunjal T.Shah waives service of notice of rule on behalf of the respondents.
4. By this petition under Article 226 of the Constitution of India , the petitioner has prayed for the following reliefs:
“A. This Hon'ble Court may be pleased to issue a writ of mandamus or writ in the nature of mandamus or any other appropriate writ or order directing the Respondents to forthwith grant refund of the amount of IGST paid by the Petitioner pursuant to Entry No. 10 of Notification No.10/2017-IGST
The court emphasized the need for timely refund processing under GST laws, overturning unjust rejection based on procedural grounds.
Refund of IGST is mandated when earlier notifications were found unconstitutional, confirming unavailability of time-bar arguments.
The court held that refund claims for IGST on ocean freight are valid if filed after notifications imposing the levy are struck down as unconstitutional.
The court affirmed that an unlawful tax collection obligates the government to refund with interest, reinforcing the principle of unjust enrichment and constitutional mandates under Article 265.
The court established that the extension of the limitation period for GST refund applications due to COVID-19 applies retroactively to claims made during that period.
Interest is payable on a tax refund when the tax was collected unlawfully, dating from payment until refund, emphasizing equity and restitution principles.
Refund applications for taxes paid under a mistake of law are not bound by strict statutory limits when the underlying tax was invalid.
The court ruled that the denial of a tax refund on grounds of limitation was wrong, emphasizing the principle of unjust enrichment, and clarified that the time limit of two years for refund applicati....
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