Case Details: TATA Steel Ltd. versus State of Jharkhand (2025) 29 Centax 152 (Jhar.)
Judiciary and Counsel Details
- M.S. Ramachandra Rao, CJ. & Deepak Roshan, J.
- Shri Salona Mittal & Ms Amrita Singh, Advs. for the Petitioner.
- S/Shri Ashok Kumar Yadav, Sr. Adv. & Aditya Kumar, Adv. for the Respondent.
Facts of the Case
The assessee had paid Compensation Cess under the provisions of the CGST Act. After making the payment, the assessee filed an application for a refund of the paid cess, submitting the required documents as per the statutory requirements. The department, after reviewing the refund application, issued a show cause notice proposing to reject the refund. The reasons for the proposed rejection included the non-furnishing of a receipt of payment, proof of export, declaration of non-prosecution, and certain other documents. In response, the assessee filed a detailed reply, asserting that the required documents had either already been submitted or were not necessary under the legal framework. Despite this, the department rejected the refund application, maintaining the same grounds mentioned in the show cause notice. The assessee then filed an appeal against this rejection. However, the appellate authority dismissed the appeal and upheld the decision to reject the refund. Consequently, the assessee filed a petition before the Jharkhand High Court.
High Court Held
The Hon’ble High Court held that the rejection of the refund was based on extraneous grounds not supported by the CGST Act and its rules. The Court observed that proof of payment was only required for the export of services, not goods, and that a reconciliation statement, already annexed to the refund application, sufficed. Additionally, the insistence on proof of export within 90 days was found to be contrary to a 2019 circular issued by the department. The Court ruled that all grounds for rejecting the refund were beyond the statutory requirements. As a result, the Court set aside the rejection order and the appellate order, directing the GST department to issue the refund along with interest to the assessee within 12 weeks.
