No requirement of CA Certificate to claim Refund.

A recent court case concerning a company's claim for a Goods and Services Tax (GST) refund in India.

The Case:

• The company filed a refund application for unutilized Input Tax Credit (ITC) for the period August 2020 to March 2021.
• The tax department demanded a certificate from a Chartered Accountant to support the claim, even though the refund amount was less than Rs. 2 lakhs.

The Law:

• The Central Goods and Services Tax Act (CGST Act) allows refunds for unutilized ITC under Section 54(3).
• Rule 89 of the CGST Rules specifies the documents needed for a refund application.
• However, a proviso to Rule 89(2)(l) and (m) waives the requirement for a Chartered Accountant's certificate if the refund falls under specific sections of the CGST Act, including Section 54(8)(b) (which applies here).

The Court's Decision:

• The court agreed with the company, stating that the tax department's demand for a certificate was not valid based on the law's provisions.
• The court ordered the department to:
  • Set aside the "deficiency memos" demanding the certificate.
  • Pay interest on the delayed refund as per Section 56 of the CGST Act.

Additional Points:

• The company had previously faced issues filing refund applications electronically due to portal problems. The court directed the department to accept any future refund applications (for August 2019, October 2019, and December 2019) without rejecting them solely based on limitation grounds.

Case Law-Svera Agro Limited Versus Commissioner of Central Tax and GST

CItation-2024 TAXONATION 454 (DELHI)

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