IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 14408 of 2025 ==================================================

ARKAY GROWN DIAMONDS PVT. LTD & ANR.

Versus UNION OF INDIA & ORS.

==================================================

Appearance:

MR DHAVAL SHAH(2354) for the Petitioner(s) No. 1 NIDHI T VYAS(7772) for the Respondent(s) No. 1,2,3 ==================================================

CORAM:HONOURABLE MR. JUSTICE BHARGAV D. KARIA and HONOURABLE MR. JUSTICE PRANAV TRIVEDI Date : 15/10/2025

ORAL ORDER

(PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA)

1. Heard learned advocate Mr. Dhaval Shah for the Petitioner and learned advocate Ms. Nidhi Vyas for the respondent appearing on advance copy.

2. Learned advocate Mr. Dhaval Shah for the petitioner invited attention of the Court to the impugned Order dated 18.06.2025 whereby the refund claim of the petitioner is rejected.

3. Learned advocate Mr. Dhaval Shah referred to the discrepancies stated in the Order Form GST-RFD-06 Dated

18.06.2025, which reads as under:

Sr Description Amount No Inadmissible

1 1. The benefit of the judgment dated 03.01.2025 passed by 3389040 Honorable Gujarat High court I the case of “Gujarat Chamber of Commerce and Industry vs. Union of India cannot be extended to you as m/s. Arkay Grown Diamonds Pvt. Td was not a party in said case/judgment. Therefore, you are not eligible to derive any benefit from the cited judgment.

2. As the said judgment was pronounced by Honorable Gujarat High court on 03.01.2025 and there is no provision of retrospective effect as per the said judgment. M/s. Arkay Grown Diamonds Pvt. Ltd. Paid the duty on 26.07.2023 vide Document no. 122310200010 whereas the said judgment was passed by Honorable Gujarat High Court on 03.01.2025.

Hence, you are not applicable for the said refund.

There is no findings given in the impugned order.

4. Referring to the above discrepancies, it was submitted that the petitioner filed the refund claim on the basis of the judgment of this Court in case of Gujarat Chamber of Commerce and Industry v. Union of India and others reported in 2025 SCC OnLine Guj 537 wherein it is held that the GST is not payable on transfer of the lease hold rights. It is further submitted that there is no stay against the decision of this Court and, therefore, the petitioner was entitled to refund of the amount of GST paid on transfer of leasehold right in favour of the petitioner.

5. It was submitted that the respondent could not have rejected the refund claim by giving above reason in FORM GST-

RFD-06.

6. Considering the above submissions, Issue Notice for disposal, returnable on 27.11.2025.

Direct Service through E-mail is permitted.

To be listed on the top of the Board.

(BHARGAV D. KARIA, J)

(PRANAV TRIVEDI,J)

phalguni